Right as European traders are getting back from their lunch breaks, the U.S. session begins at 8:00 am EST as traders start rolling into the office. Or rolling out of bed if they work from their home office.
Just like Asia and Europe, the U.S. session has one major financial center that the markets keep their eyes on.
We’re talking of course, about the “City That Never Sleeps!New York City baby! The concrete jungle where dreams are made of!
Where the lights are bright, the pace is fast, and the rats are bigger than your dreams. 😂
The New York trading session run from 13:00 to 22:00 GMT (Greenwich Mean Time)
In local time, it’s 8:00 AM to 5:00 PM New York time
About 17% of all forex transactions happen in New York.
Some traders also refer to the New York session as the “North American” trading session.
That’s because aside from New York, there are major financial centers open in North America as well, such as Toronto and Chicago.
Below is a table of the New York session’s pip volatility per hour for the major currency pairs.
| Pair | New York |
|---|---|
| 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 were calculated using averages of past data. Take note that these are NOT ABSOLUTE VALUES and can vary depending on liquidity and other market conditions.
An easy way to find out the current average pip range for a currency pair during the Tokyo session is to use our MarketMilk™ app.
For example, here is the average pip range for EUR/USD.
The New York Session Split Into Three
The New York can actually be divided into three sessions:
- Morning session: 8am – 12pm EST
- Lunch session (or lunch hour): 12pm – 1pm EST
- Afternoon session: 1pm – 4pm EST
Most of the action happens during the morning session.
Technically, the New York afternoon session doesn’t really end until 5pm EST, but trading activity typically dies when the U.S. stock market closes which is 4pm so it’s not really safe to trade beyond that time.
Crack the Forex Clock: Visualize global market hours in your local time using our Forex Market Hours tool.
Tips on Trading the New York Session
Here are some tips you should know about trading during the New York session:
- There is high liquidity during the morning, as it overlaps with the European session.
- Most economic reports are released near the start of the New York session. Remember, about 85% of all trades involve the dollar, so whenever big-time U.S. economic data is released, it has the potential to move the markets.
- Once European markets close shop, liquidity, and volatility tend to die down during the afternoon U.S. session.
- There is very little movement Friday afternoon, as Asian traders are out singing in karaoke bars while European traders head off to the pub to watch the soccer match.
- Also on Fridays, there is the chance of reversals in the second half of the session, as U.S. traders close their positions ahead of the weekend, in order to limit exposure to any weekend news.
Which Pairs Should You Trade?
Take note that there will be a TON of liquidity as both the U.S. and European markets will be open at the same time.
You can bet that banks and multinational companies are burning up the telephone wires.
This allows you to trade virtually any pair, although it would be best if you stuck to the major and minor pairs and avoid those weird ones.The US dollar (USD) is the most heavily traded currency during this session, as it’s the domestic currency of the United States.
Also, because the U.S. dollar is on the other side of the majority of transactions, everybody will be paying attention to the U.S. data that is released.
Crucial economic data and news from the United States, such as the Federal Reserve’s interest rate decisions, GDP reports, and Non-Farm Payroll (NFP) data, are typically released during this session.
Should these reports come in better or worse than expected, it could dramatically shake up the markets, as the dollar will be jumping up and down.
Major currency pairs like EUR/USD, GBP/USD, USD/JPY, USD/MXN and USD/CAD are particularly active.
Is the New York session right for you?
If you’re based in North America or prefer trading during US business hours, the New York session might be a good fit. It offers ample liquidity and volatility, especially for USD pairs.
The session’s focus on US economic news also makes it attractive for news traders. However, if you’re uncomfortable with volatility or prefer trading during off-peak hours, other sessions might be more suitable.
Confused about which sessions start when? We made the next section just for you!
