non-farm payroll NFP report published. This data release can cause major swings in all dollar-related pairs. All in all, Tuesday, Wednesday and Thursday are the best days for Forex trading due to higher volatility.

During the middle of the week, the currency market sees the most trading action. As for the rest of the week, Mondays are static, and Fridays can be unpredictable. Now that we have reviewed the intraweek market dynamics, let's see what happens throughout the year. What are the best months to trade Forex? The whole calendar year divides into three clear periods of volatility.

Out of these three periods, two provide good conditions for trading. December is also a generally good month for trading, though there's a noticeable decrease in market activity near the end. The main reason for this fluctuation in volatility, is holidays.

Any holiday period naturally leads to a decrease in trading volumes. After the holiday period ends, there's a pickup in market activity. Once again, it all boils down to the habits of the big market movers. There's a saying on the trading floors of London: "sell in May and go away". August is the worst month to trade, since many institutional traders in Europe and North America are on vacation. This leads to bigger and less predictable price swings. The big market movers have to protect their portfolios and returns, which leads to:.

If you still want to continue trading in the summer, you must prepare for periods of ups and downs. A range-based system is more appropriate for the summer. The same goes for trading in small intervals, to catch mini-trends.

Sooner or later, the summer sideway trend breaks. It usually happens immediately after Labor Day in the U. S - celebrated on the first Monday in September. The last four months are the most important for yearly returns: because even after you've experienced a poor summer season, it's possible to improve your profits during autumn and winter. If you've decided to skip the summer trading season, be smart about how you return to the market. Test the new conditions on a Demo account first, to get a better feel for future trends, and without exposing yourself to risk.

The autumn boom reflects the majority of traders returning to the markets after their summer holidays. Business activity in other industries also picks up around this time. This makes autumn months the best time of the year to trade Forex. By the second half of December, trading activity slows down - much like in August. The few weeks before and after Christmas are the slowest. It's not until mid-January that the markets start to pick up.

The first period of the new year is always an open season for trading. Traders usually have a period of four-to-five consecutive months to make some cash, before the summer drought hits again.

It may not compare to the autumn season, but it does provide many excellent opportunities. Without a doubt, it's the second best period to trade the currency market. Here's one thing to keep in mind throughout the year when it comes to trading: if there is a globally celebrated holiday, trading volumes decrease and the markets can go through a few unexpected swings.

This is especially true for major holidays like Christmas and Easter. As a trader, you should always check up on these holidays and add them to your trading calendar. So, high market volatility brings more opportunities for currency trading. And to avoid frustration from a lack of market moves - don't trade during periods with low volatility. Did you know that it's possible to trade with virtual currency, using real-time market data and insights from professional trading experts, without putting any of your capital at risk?

That's right. With an Admirals' risk-free demo trading account, professional traders can test their forex strategies and perfect them without risking their money. A demo account is the perfect place for a beginner trader to get comfortable with trading, or for seasoned traders to practice. Whatever the purpose may be, a demo account is a necessity for the modern trader. Open your FREE demo trading account today by clicking the banner below!

About Admirals Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8, financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today! This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

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Best Days of the Week to Trade Forex Admirals Jun 29, 10 Min read. Best Day and Best Time For Forex So, what are the best days of the week and best time to trade Forex? Take a look at the table below to see the daily pip range for major currency pairs : Currency Pair Sunday Monday Tuesday Wednesday Thursday Friday EURUSD 69 GBPUSD 73 USDJPY 41 65 82 91 98 AUDUSD 58 84 99 NZDUSD 28 81 98 87 96 USDCAD 43 92 EURJPY 19 GBPJPY EURGBP 35 74 81 79 75 91 EURCHF 35 55 55 64 87 76 If you've got some trading experience under your belt, you may have already noticed that market volatility is not consistent.

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An all-in-one solution for spending, investing, and managing your money. More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. Fundamental analysis can be used to determine which technical analysis signals are more likely to perform better. Dollar, this correlation is not very strong, but may have a use within technical analysis, which will be discussed later within this article.

Dollars, you would expect the price of Gold in Dollars to be very strongly positively correlated with the U. If you open plenty of trades during the day, getting the timing right can make or break your trading day.

Lastly, some European traders may be closing their positions as their day ends, which could lead to some choppy moves right before lunchtime in the U. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. Traders can then look to trade within either the volatile or quiet periods, with both approaches having their own merits and disadvantages. These announcements can generate significant volatility depending on the market reaction, so every forex trader needs to know when they are published.

Even though dozens of economic releases happen each weekday in all time zones and affect all currencies, a trader does not need to be aware of all of them.

It is important to prioritize news releases between those that need to be watched versus those that should be monitored. When only one market is open, currency pairs tend to get locked in a tight pip spread of roughly 30 pips of movement. Two markets opening at once can easily see movement north of 70 pips, particularly when big news is released.

Many first-time forex traders hit the market running. They watch various economic calendars and trade voraciously on every release of data, viewing the hours-a-day, five-days-a-week foreign exchange market as a convenient way to trade all day long.

Not only can this strategy deplete a trader's reserves quickly, but it can burn out even the most persistent trader. Unlike Wall Street, which runs on regular business hours, the forex market runs on the normal business hours of four different parts of the world and their respective time zones, which means trading lasts all day and night. So what's the alternative to staying up all night long? If traders can gain an understanding of the market hours and set appropriate goals, they will have a much stronger chance of realizing profits within a workable schedule.

First, here is a brief overview of the four markets hours in Eastern Standard Time, or EST :. New York open 8 a. is the second-largest forex platform in the world, watched heavily by foreign investors because the U.

Movements in the New York Stock Exchange NYSE can have an immediate and powerful effect on the dollar. When companies merge, and acquisitions are finalized, the dollar can gain or lose value instantly. Tokyo, Japan open 7 p.

is the first Asian trading center to open, takes in the largest bulk of Asian trading, just ahead of Hong Kong and Singapore. dollar vs. Japanese yen. Sydney, Australia open 5 p. is where the trading day officially begins. While it is the smallest of the mega-markets, it sees a lot of initial action when the markets reopen on Sunday afternoon because individual traders and financial institutions are trying to regroup after the long pause since Friday afternoon.

London, Great Britain open 3 a. to noon : The United Kingdom U. dominates the currency markets worldwide, and London is its main component. The city also has a big impact on currency fluctuations because Britain's central bank, the Bank of England, which sets interest rates and controls the monetary policy of the GBP, has its headquarters in London.

Forex trends often originate in London as well, which is a great thing for technical traders to keep in mind. Technical trading involves analysis to identify opportunities using statistical trends, momentum, and price movement.

Currency trading is unique because of its hours of operation. The week begins at 5 p. EST on Sunday and runs until 5 p. on Friday. Not all hours of the day are equally good for trading. The best time to trade is when the market is most active. When more than one of the four markets are open simultaneously, there will be a heightened trading atmosphere, which means there will be more significant fluctuation in currency pairs.

When only one market is open, currency pairs tend to get locked in a tight pip spread of roughly 30 pips of movement. Two markets opening at once can easily see movement north of 70 pips, particularly when big news is released.

The best time to trade is during overlaps in trading times between open markets. Overlaps equal higher price ranges, resulting in greater opportunities. Here is a closer look at the three overlaps that happen each day:. While understanding the markets and their overlaps can aid a trader in arranging his or her trading schedule, there is one influence that should not be forgotten: the release of the news. A big news release has the power to enhance a normally slow trading period. When a major announcement is made regarding economic data —especially when it goes against the predicted forecast—currency can lose or gain value within a matter of seconds.

Even though dozens of economic releases happen each weekday in all time zones and affect all currencies, a trader does not need to be aware of all of them. It is important to prioritize news releases between those that need to be watched versus those that should be monitored. In general, the more economic growth a country produces, the more positive the economy is seen by international investors.

Investment capital tends to flow to the countries that are believed to have good growth prospects and subsequently, good investment opportunities, which leads the country's exchange strengthening. Also, a country that has higher interest rates through their government bonds tend to attract investment capital as foreign investors chase high yield opportunities. However, stable economic growth and attractive yields or interest rates are inexorably intertwined.

Examples of significant news events include:. A stock exchange generally lists and trades in shares of a given country, so even when other stock markets are open internationally, they are largely trading in local securities and not the same exact stocks.

While there are foreign stocks listen in the U. as ADRs, for example, the ADR shares will remain closed at certain hours when the actual foreign shares are open, and vice-versa. Liquidity refers to how easy it is to quickly buy or sell securities for a fair price.

On the other hand, in an illiquid market the spread between the bid and ask may be very wide and not very deep. I general, liquid currency pairs are those that are active and have high trading volume. The most traded currencies in the world include the U.

Dollar USD , Euro EUR , Japanese Yen JPY , British Pound GBP , Australian Dollar AUD , Canadian Dollar CAD , and Swiss Franc CHF. It is important to take advantage of market overlaps and keep a close eye on news releases when setting up a trading schedule. Traders looking to enhance profits should aim to trade during more volatile periods while monitoring the release of new economic data.

This balance allows part-time and full-time traders to set a schedule that gives them peace of mind, knowing that opportunities are not slipping away when they take their eyes off the markets or need to get a few hours of sleep.

Bank for International Settlements. Bank of England. Kathy Lien. Company News Markets News Cryptocurrency News Personal Finance News Economic News Government News. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Table of Contents. Forex Markets Hours of Operation. The Best Hours for Forex Trading. Overlaps in Forex Trading Times. Impact of News Releases. The Bottom Line. Key Takeaways The forex market runs on the normal business hours of four different parts of the world and their respective time zones.

The U. to noon EST has the heaviest volume of trading and is best for trading opportunities. is not as volatile as the U. Why Do Forex Markets Trade Around the Clock But Not Stock Markets? Why Is Forex Liquidity Important? Which Are the Most Liquid Currencies? Article Sources. Investopedia requires writers to use primary sources to support their work.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Compare Accounts. Advertiser Disclosure ×. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Partner Links. Related Terms. Forex Market Hours: Can You Trade 7 Days a Week?

Forex market hours refers to the specified period of time when participants are able to transact in the foreign exchange market. Forex FX : How Trading in the Foreign Exchange Market Works The foreign exchange, or Forex, is a decentralized marketplace for the trading of the world's currencies. Foreign Exchange Market: How It Works, History, and Pros and Cons The foreign exchange market is an over-the-counter OTC marketplace that determines the exchange rate for global currencies.

National Currency A national currency is a legal tender issued by a central bank or monetary authority used to exchange goods and services. Overnight Position Overnight positions refer to open trades that have not been liquidated by the end of the normal trading day and are often found in currency markets. Facebook Instagram LinkedIn Newsletter Twitter.

What are the best days of the week to trade Forex? It is important to take advantage of market overlaps and keep a close eye on news releases when setting up a trading schedule. Traders try to learn future trends and adjust their trading patterns making Monday the least volatile day for trading. European traders wait for economic news and macro data: before they decide to open new orders. This means most companies only think about conservation as opposed to growth. One should be aware of when and when not to trade. And to avoid frustration from a lack of market moves - don't trade during periods with low volatility.

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