Forex trades around the clock from Monday morning in Sydney to Friday evening in New York, but it is not one continuous market. Liquidity and volatility rise and fall with the four regional sessions.
The Sydney and Tokyo sessions are quieter for the majors, with the yen, Australian and New Zealand dollars most active. Ranges are narrower and spreads on exotic pairs can be wider.
London is the largest session by volume. The open at 08:00 London time frequently sets the day’s direction for European currencies, and the London fix at 16:00 brings a burst of flow in metals as well as FX.
New York overlaps with London for roughly four hours in the afternoon, European time. This overlap is the most liquid window of the day and the one where major US data releases land.
The practical use: match your strategy to the session. Breakout approaches suit the London open; range strategies suit the Asian hours; news traders live in the overlap. Our market hours tool shows every session in your local time and which are open right now.