When Can You Trade Forex London Session

European market players are just starting their day as Asian market participants are beginning to close their doors.

June 29, 2022 - 09:49 AM 280 views

what time is the london session forex

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European market players are just starting their day as Asian market participants are beginning to close their doors.

Despite the fact that there are several financial centres in Europe, participants in the market focus on London.

Due to its advantageous location, London has historically been at a centre of trade.

London now reaps the benefits of its time zone. The morning in London coincides with late Asian trading, whereas the afternoon in London coincides with New York City.

With thousands of people conducting trades every minute, it is understandable why it is regarded as the global centre of currency.

London is where about 43% of all Forex market (FX) transactions take place.

The London session is sometimes referred to as the "European" trading session by traders.

This is due to the opening of other important financial hubs in Europe outside London, including Geneva, Frankfurt, Zurich, Luxembourg, Paris, Hamburg, Edinburgh, and Amsterdam.

The major currency pairs' London session pip ranges are listed in the table below.

PAIR

LONDON

EUR/USD

83

GBP/USD

82

USD/JPY

36

AUD/USD

60

NZD/USD

64

USD/CAD

66

USD/CHF

58

EUR/JPY

80

GBP/JPY

102

AUD/JPY

86

EUR/GBP

40

EUR/CHF

30

These pip values were computed using historical data averages. Keep in mind that these are NOT ABSOLUTE VALUES and that they might change based on market factors such as liquidity.

Additionally, because the Swiss franc was tied to the euro at 1.2000 throughout that time, the session range for EUR/CHF was left out.

These pip values were computed using historical data averages. Keep in mind that these are NOT ABSOLUTE VALUES and that they might change based on market factors such as liquidity.

Additionally, because the Swiss franc was tied to the euro at 1.2000 throughout that time, the session range for EUR/CHF was left out.

An interesting information about the European session is as follows:

  •      A significant portion of forex transactions occur during the London session since it overlaps with the other two important trading hours and because London is such an important financial hub. High liquidity and possibly cheaper transaction costs—smaller pip spreads—are the results of this.
  •     The London trading session is typically the most volatile due to the volume of transactions that occur.
  •     The majority of trends start during the London session and typically last until the start of the New York session.
  •     As traders frequently leave the trading floor to have lunch before waiting for the New York trading period to start, volatility tends to decline in the middle of the session.
  •       At the conclusion of the London session, trends might occasionally change when European traders opt to lock in winnings.


Which Pairs Are Best for Trading?

Since there is so much liquidity during the European session due to the volume of transactions, practically any pair can be traded.

Of However, since the majors (EUR/USD, GBP/USD, USD/JPY, and USD/CHF) typically have the tightest spreads, it may be preferable to stay with them.

Additionally, any news stories that are released during the European session typically have a direct impact on these pairs.

Additionally, as they are currently quite volatile, you can attempt the yen crosses (more particularly, EUR/JPY and GBP/JPY).

The spreads, however, might be a little wider because these are cross pairings.

The New York session is up next; it's a dream-making jungle. Hey, wasn't that a song by Alicia Keys?

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