As European traders settle back from their lunch breaks, the U.S. market gears up for action, starting at 8:00 a.m. EST. Traders across North America start their day, many working remotely from home.
Just as Asia and Europe have primary financial hubs, the U.S. session centers on a major player in global finance: New York City. Known for its fast pace, New York dominates this trading period with its own unique intensity.
The New York trading session runs from 13:00 to 22:00 GMT (Greenwich Mean Time), corresponding to 8:00 a.m. to 5:00 p.m. New York time.
With around 17% of all forex trades happening in New York, this session holds significant influence in the global market. It’s often called the “North American” session because it includes other financial hubs in North America, such as Toronto and Chicago.
Key Currency Pairs for the U.S. Session
Liquidity surges during the overlap with the European session, making this a prime time for trading a variety of currency pairs. Here are examples of average pip movements per hour during the U.S. session across major pairs:
Pair Pip
Movement
EUR/USD
16
GBP/USD
20
USD/JPY
23
AUD/USD
13
NZD/USD
12
USD/CAD
17
USD/CHF
15
EUR/JPY
25
GBP/JPY
31
AUD/JPY
19
EUR/GBP
9
EUR/CHF
12
These pip values reflect historical averages and are not guaranteed; volatility can shift based on liquidity and economic developments.
To stay on top of average movements in the U.S. session, consider using a forex market tracking tool, which can display volatility trends for various pairs based on current data.
Breaking Down the New York Session
The U.S. trading day can generally be divided into three parts:
Morning Session (8:00 a.m. – 12:00 p.m. EST): This period sees the most activity and often the highest volatility.
Lunch Hour (12:00 p.m. – 1:00 p.m. EST): The pace may slow slightly as traders take lunch, but activity resumes shortly after.
Afternoon Session (1:00 p.m. – 4:00 p.m. EST): Though trading continues until 5:00 p.m., volatility often decreases after 4:00 p.m. when the U.S. stock market closes.
Strategies for Trading the U.S. Session
Consider the following when trading during the U.S. session:
Expect High Liquidity Early: Liquidity spikes during the morning due to the overlap with Europe, making this a popular time for trade setups.
Focus on U.S. Data Releases: Significant U.S. economic indicators, such as employment figures and interest rate announcements, are often released at the start of the session. Given that a large proportion of forex trades involve the dollar, these reports can significantly affect currency prices.
Reduced Activity in the Afternoon: After European markets close, liquidity and price movements may calm down, providing fewer opportunities for substantial gains.
Friday Afternoons Are Slower: Activity often declines in the later part of the session on Fridays, as traders in North America may avoid holding positions over the weekend due to potential news developments that could impact Monday’s market.
Ideal Pairs for U.S. Session Trading
The U.S. dollar takes center stage in this session, as it’s one of the most frequently traded currencies. Key currency pairs, particularly USD-based pairs like EUR/USD, GBP/USD, USD/JPY, and USD/CAD, experience heightened activity due to the volume of transactions involving the dollar.
For those seeking higher volatility, pairs like GBP/USD and USD/MXN can offer significant movement during this session, especially when important news or economic data is released in the United States.
The U.S. session can be ideal if you prefer active markets and are comfortable with high-volatility environments. Its focus on U.S.-specific economic data offers many opportunities for traders looking to act on real-time news and data reports. However, if you prefer steadier, low-volatility markets, you may want to explore quieter trading sessions.