London Session Forex Time
The traders from Europe just begin their day when their Asian colleagues are getting closer to the finish line.
Despite the fact that there are a couple of monetary centers around Europe, the market members watch London carefully, because it’s the most relevant one.
Even from the historical point of view, London used to be the trading center, which was connected with his location.
The city is thought to be the trading capital and plenty of entrepreneurs process transactions there at this very moment. Approximately 30% of the total amount of operations is made within this session. It allows for making some conclusions.
Here is the chart of the London session (to be exact, pip ranges) of the main pairs.
The figures given are provided using the numbers from the previous info. They are not absolute and can alter because of marketability and different market indicators, which can also affect the current situation.
The EUR/CHF scale is not here because the franc was bound to the euro at 1.2000 within the time interval mentioned.
What about some new facts on the period noted? If you are ready, let’s begin:
Many operations are processed at this period as long as this session traverses with two main ones (London is the chief monetary capital). It provokes high marketability and smaller costs of making transactions, and, therefore, smaller pip spreads.
The session given is the most unstable because of plenty of operations to occur. It’s hectic.
The trends are initiated within this session, and they normally will go through the start of the New York one.
Volatility will fade in the medium period of the session. This happens because traders have a lunch break right before the initiation of the New York trading.
Trends may change at the final stage of the session because the traders from Europe can lock in benefits. Just note this when trading.
Which Pairs Are Better To Trade?
As long as there are many transactions processed, the liquidity is high. That’s why it’s possible to trade anything. It gives freedom of choice, but you should be wise anyway.
The chief ones are better to choose (like GBP/USD and USD/CHF) because their spreads are the hardest.
The chief pairs are more affected by the coming news appearing within the European session.
Yen crosses can also be chosen (like GBP/JPY and EUR/JPY) as long as they are rather unstable at that period, although the spreads can be broader, which is connected with the crossing of pairs.
The next one is the New York session. Are you ready to hear something well-known?