Just before the Asian trading session is coming to a close, the European/London session in forex trading currency takes over, thus keeping the market alive and kicking all the time. The forex European/London session includes a number of major financial markets and is very dense. The market gets into its full swing with the opening of the European/London forex trading session. Read on to know more.
London ultimately takes the credit for defining the stricture of the European session in forex. With the key financial markets standing in as the symbolic capital, the official business hours in London run between 7:30am and 3:30pm GMT. But the other capital markets' presence like Germany and France, this trading period gets expanded before the official open in the U.K. The volatility factor pushes the end of the forex European/London session until the London fix after the close. Therefore, the European forex trading currency hours are typically from 7am to 4pm GMT.
European financial centers and London account for more than 50 percent of total global trading volume traded daily. London alone accounts for about one-third of this daily global volume of forex trades. London, Bonn, Paris, Zurich and Geneva are important financial centers that are active during the European forex session. The European/London session in forex trading currency overlap with half of the Asian trading and half of the North American trading session. This clearly means that the market interest and liquidity are at its absolute peak during the European forex session.
Any news and data events reported from the Eurozone and countries like Germany and France, Switzerland, and the United Kingdom are usually released in the early-morning hours of the European/London forex trading session. Therefore its no surprise to see some of the biggest moves and trades taking place in the European currencies like - EUR, GBP, and CHF. The euro cross currency pairs like EUR/CHF and EUR/GBP also show lots of volatility and fluctuations during this time.
During the late-morning hours of the European/London session in forex, the Asian trading centers start winding down.