When the North American session in forex trading currency comes on line, half of the day is over for the European traders and the Asian markets have already been closed for a couple of hours. The forex North American session is dominated by activity in the U.S. Of course, there are contributions from Canada, Mexico and a number of countries in South America. Read on to learn more on North American forex session.
The New York City is responsible for marking the high in volatility and participation for the North American forex trading session. The early activity in financial futures, commodity trading and the economic releases, the Western forex session hours unofficially start at noon GMT. As there is a significant gap between the closing of the U.S. markets and opening of the Asian trading, one observes stillness in liquidity sets at 8pm GMT with the closing of the North American forex trading session.
As the European and North American forex session overlap, the trading volumes during these sessions are much more important. Some of the biggest and most important price movements take place during this period of overlapping. However, North American forex trading session accounts for about 22 percent of global daily trading volume, which is roughly the same share of global trading volume as the Asia-Pacific market.
Most of U.S. data reports and events are released at 8:30 a.m. ET. Some others follow out later between 9 and 10 a.m. ET. Canadian data reports also made public in the morning, which is usually between 7 and 9 a.m. ET. A few U.S. economic reports released at noon or 2 p.m. ET, generate volatile activity in the New York afternoon market.
Generally, a significant fall in the market liquidity and interest is observed during the afternoon of North American session in forex trading currency which makes trading conditions even more challenging. On quieter days, the lower market interest can typically lead to declining price action. And on more active days, with the prices having moved more significantly, the lower liquidity can ignite additional outsized price movements. Therefore traders need to be more aware and adapt accordingly as there’s never a set way to follow in the North American forex session.