North American Financial Centers Make Up the New York Trading Session


April 20, 2021 | AtoZ Markets – The trading session that we will discuss is the New York trading session which is also known as the North American trading session. We can call it as the North American trading session because it also comprises of other North American major financial centers such as Toronto and Chicago even when a lot of forex trading transactions happen in New York. The percentage of all the forex trading transaction that happen in the city of dreams, New York is more or less 17%

More on the North American trading session

The North American trading session also has a major financial center which is New York that is why it is one of the sessions that traders seek out and monitor. The North American begins at 8:00 in the morning, EST when traders are about to go to work and Europeans finish their lunch breaks at noon time. This means that there is an overlap with the European trading session. The North American session and the European session are both open and live that is why there is high liquidity in the morning.

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The percentage of all trades that involve the US Dollar is 85%. News and press releases involving the economy and politics greatly moves the market even for the North American trading session. These reports and news are released just right before the start of the North American session that massively impacts the market. In the afternoon of North American session, liquidity and volatility tones down as European shops close. During Friday afternoon, there is very minimal movement because Asian and European traders are less active compared to weekdays as they focus more on other things like family, friends, and career. Also, Friday is unlike any other day because American traders tend to close positions before the weekend starts so that they can avoid risks that may come in the weekend as news and press releases come out. They cannot monitor the market that often.

Now, what are the best currency pairs to pick in a North American trading session?

Given all the information we just went through, it might be safe to say that we can trade any pair. It can be a major currency pair or even a minor currency pair, but it is best to avoid the exotic currency pairs. It is because of the overlap of the European and North American trading session. They are open at the same time that is why there is a massive trading volume and transactions. Also, given the fact that the US Dollar is opposite with most transactions, everybody keeps an eye on the news and press releases that involves the US. Regardless if it is positive or negative, it has the power to make the US Dollar go up and down.

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