As mentioned above, the currency market is a decentralised market and there will be at least one region of the world that will be exchanging a currency at any time of the day. Hence, the market is open from Monday 12 am (GMT) till Saturday 12 am (GMT).

However, the liquidity of the market is not consistent throughout those opening times.

In fact, the market is much more liquid at specific times of the day. This includes the pre-opening and opening sessions of the UK and US market. This is usually the time when currency prices make the biggest move. The market then calms down and they go back into their range.

With that, the following are the Trading Sessions when the FX market is most liquid:

  • UK Session 7am-10am GMT
  • US Session 7am-11am New York Time (Apprx 12–3pm GMT)
  • Asian Session 7am-11am Tokyo Time (Apprx 12–3am GMT)
  • Major news release – including
    • Interest rates announcement
    • US Non-Farm Employment data release
    • Other major economic data release

On the other hand, market is least liquid during

  • UK Bank Holidays
  • US Public Holidays
  • Pre-Christmas

As you probably realised, UK and US markets plays an important role in the liquidity of the currency market. This is due to the fact that London is the largest financial center in the world, trading nearly 30% of all Forex transactions. With such a heavy trade volume, the European Session experiences some of the largest moves in the market.

This is followed by the North American session where it is dominated by U.S. transactions. Since nearly 85% of all Forex trades involve the USD, this session has been known to generate tremendous moves in the market.

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