Forex three session New York session

The previous articles have briefly introduced the Tokyo Forex trading session as well as the London forex trading session. Following the London traders lunch time is over, the last of the markets to open each day, the New York trading session definitely carries a lot of weight in how the markets move. This session is dominated by activity in the US with few contributions from Canada, Mexico and a number of countries in South America.

There are some important hits for traders who are trading during New York Session:
US dollar can be found in more than 40% of all currency transactions, it has an even greater share during the New York session. Remember that – The dollar is the kingmaker.

Within a day, the morning session is very active as the European traders are involved. However, the afternoon session is not active as the European market has closed (liquidity and volatility tends to die down) and the American traders take time for late lunch and breaks.

Within a week, The New York market is the last to close. By the market closing, the traders in Asian and European have already been enjoying their weekend. Thus, the traders in Americas at the most of time may close up their positions early.

Also on Fridays, there is the chance of reversals in the second half of the session, as U.S. traders close their positions ahead of the weekend, in order to limit exposure to any weekend news.

The key economic data in Americas is generally released in the morning, and the market has very fast response on each release. During the 8am and 12pm in the New York time, the European traders are still working and they also can get in on the action of each release.

A very important statistic for American employment number is Non-farm payroll (also known as NFP), which is generally released on every first Friday of the month. The release preceding takes 15 minutes, all traders will start placing orders on how this data will affect the market and all the dollar-denominated pairs are known to move wildly.

Commodity prices, especially oil, are important to traders active in the New York session. The price of oil greatly affects the US economy, as well as the Mexican and Canadian economies, which are both heavily tied to oil exports.

What we should trade during this session? As there will be a huge liquidity as both the US and European markets are opening at the same time. It allows you to trade any pair, but the result may be better if you stick on the major currency pairs. All the majors have US dollar on a side; everyone will pay lots of attention on the US economic data release. When these reports come in better or worse than expected, it could significantly shake up the markets as the US dollar will be jumping up and down. It will be a good opportunity for you as well.

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