New York Forex Pairs – Liquid Majors

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What are the best New York Forex pairs to trade during the New York session? Below are some great insights to help you learn about New York forex pairs and how to trade them.

As a foreign exchange market, New York is known to be the second-largest market. The US Forex Exchange accounts for 17% of the world’s total volume of vast Forex Pairs transactions.

At what time does the New York trade session start working?

The New York trading session begins at 3 pm and ends at 11 pm GMT+2. It is also known as the North American trading session.

Many of you don’t know that the New York trading market covers the maximum number of trading hours in a day for trading major currency pairs. Consequently, it might overlap with the rest of the sessions for a couple of hours, including European session time.

Which are the best New York forex pairs to trade with lesser risk?

A variety of forex pairs are available to traders entering the New York trading session to minimise trading risk.

The most suitable pairs for the New York session are USD/CAD, EUR/USD, and USD/JPY. Its less volatile nature is one of the reasons for its popularity.

Additionally, these three currency pairs can significantly increase your profit potential with a lower risk outcome.

With the high liquidity of these forex pairs, the traders will make some huge profits or limit their losses effectively.

Apart from that, relatively modest volatility will also provide a risk-free trading environment for traders to implement long-term trading strategies.

Table of London session pip ranges of major currency pairs

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Below is the table of New York session pip ranges of few major currency pairs to trade on:

Currency Pair London pip range
EUR/USD 77
GBP/USD 68
USD/JPY 34
AUD/USD 68
NZD/USD 62
USD/CAD 67
USD/CHF 56
EUR/JPY 72
GBP/JPY 77
AUD/JPY 71
EUR/GBP 50
EUR/CHF 46

A trader can calculate the pip values by using the past data average.

Note: These are not absolute values, and they can vary based on liquidity and market conditions.

Strategies & risks involved in New York forex pairs trading

There is no doubt that trading currencies during the New York session can yield tremendous profits. At the same time, traders must also know that it can be risky. At this time of trading, the market can move quite rapidly.

Traders need to revise their trading strategies and look at future price movements.  Further, it is equally important to adapt to the upcoming market conditions and how trends follow.

There are times when an order is not executed correctly at the price that the forex trader has set. This might happen due to inevitable price slippages or other conditions in which high volatility occurs. It is pretty standard during the release of economic data.

Trading breakouts in New York forex session

As soon as the New York session overlaps with the US session, traders will notice a more comprehensive price range between the currency pairs. This is due to the presence of more investors in a trade market.

Hence, the volume of transactions is a lot higher than the rest of the trading days. During overlap, the price movements are enormous. The use of a breakout strategy will allow the traders to increase their profits fully.

Is it profitable to trade in New York trading?

London and New York sessions open simultaneously, so there might be an overlap between the two sessions. Thus, you can expect a higher volume of orders flowing through the entire market.

A sudden drop in economic news occurs during the New York session. This is because 85% of economic news relates to the US dollar. Due to this fact, traders should watch US dollar pairs and move in the market over time.

As soon as the market opens, the liquidity of the market is exceptionally high. Around noon, however, it starts to decline. Lunchtime shows a consolidation phase.

In addition, you should consider that the market loses momentum on Friday because European and Asian markets begin their weekend trade. Therefore, I don’t think it’s a good idea to start trading on Friday afternoons.

How are the prices of the best forex pairs affected during the New York session?

In most cases, currencies in the forex market are generally quoted in US dollars. Thus, they are traded against the US dollar before they are moved to any other currency.

For example, you have to first trade against dollar currency and then against Yen currency to convert the British pound into Japanese yen.

GBP/JPY is based on two transactions with various currency pairs, including GBP/USD and USD/JPY. Volatility between the currency pair GBP/USD is determined by correlations traded for producing final sell/buy transactions with that currency pair.

In pairs, USD/JPY and GBP/USD both have negative correlations due to which the volatility of currency pairs increases. This shows how much trading is done on this currency pair every day.

Tips & strategies to follow during New York trade

  1. To earn huge profits from the New York forex market, a trader needs to have extensive knowledge about the foreign exchange market.
  2. Suitable leverage is needed during the trade for capitalising on the volatility and liquidity of New York sessions.
  3. Keep yourself familiar and updated with the New York forex session and New York forex session characters.

Bottom line

All in all, it is clear that you should stick with major currency pairs during the New York session, including GBP/JPY, EUR/JPY, GBP/USD, and USD/CHF. Keep yourself miles away from exotic Forex pairs.

You will experience high liquidity during the morning schedule of the New York session because the US session overlaps the entire European session.

Do a bit of research on each forex currency pair and see which one of them has the high volatility and chances of gaining excellent profitability.

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