Aug 6 2010
The trading day of a Forex trader in commercial banks in Europe, North America and Asia begins at 7:30 am local time. Half an hour is spent on analyzing of the events that happened since the end of the last working day. When all the info is analyzed they have a more or less clear picture of the likely changes in exchange rates for the next day with various scenarios of further movements. At 8:00 traders begin their job by actively making the first transaction.
Independent day traders on
Forex in Singapore and other places also start their trading day early in the morning by researching the market and deciding on their trades for the coming day. When they enter the market and begin to open positions it has its influence on the changes in the market.
During the day you can see how the activities of different territorial markets change.
Asia.
This market is active from the deep night according to GMT. This is where the trading day begins. This region is characterized with the biggest volumes of transactions made for the currency pairs associated with the Japanese yen, Australian and New Zealand dollars. Currencymovements are usually small during this time, about 50 points. Before noon Tokyo works very actively, before dinner - Singapore.
trading in Singapore is often concentrated on SGD as well as JPY, AUD and NZD. Being a big financial center in Asia
Singapore Forex trading has a big influence on the market during these hours
Europe.
The European market such as Paris, Zurich, Luxembourg, Frankfurt am Main, starts at 7:00 am GMT time. But the real active European trading starts at about 8:00 am GMT when London Stock Exchange joins the market. Usually the market is very volatile for the next 2-3 hours before the lunch. During lunch break in Europe, currency trends calm down a little to about 10-20 points. Such market is called boring, or even more than that - dead. This is the time when it is almost impossible to trade and the changes are very small. But sometimes, you can see very strong trends during the lunch break that may reach big figures (up to 100 points). Such market is called busy market. If you have got such a trend, it is a good opportunity to make nice pips.
North America.
At about 14:00 GMT, after dinner, European traders resume their job. That is exactly the time when American traders start their day. When they join the European traders, the market experiences a big flow of funds. But the volumes and forces of American and European financial banks are about the same, so currency changes usually show small vibrations during this session. But the opening of the New York Stock Exchange is extremely interesting for Singapore and other traders, because the American market decides the further change of the rates. In the evening, after 17:00 GMT when the European stock exchanges are closed and U.S. banks remain alone on market, this is the time when long trends take place associated with the American dollar. Changes in quotes can reach few percent and held for 400-500 points. This is the time when the market gives good possibility for every trader to make profits.
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