This article looks at the time and movements on the foreign exchange Melbourne.
When you are looking at foreign exchange Melbourne rates you should consider the time of day you are looking at. Not many people consider that the time of day will affect the foreign currency exchange rates. These people would be wrong as time can seriously affect the rates. This is something that any forex trader should be looking at. The traders that need to take particular note of the foreign currency exchange rates at different times are day trades. Of course it is best that all traders know what times they should trade in.
The Best Time on the Foreign Exchange Melbourne
There are certain times of day when the forex market is the most active. It is during these times that you are likely to get the best foreign currency exchange rates. The reason for this is that the market is at its most volatile and the rates will swing.
There is one particular window when the market is at its most active. This is when the UK and US sessions overlap. At this time the highest number of traders will be working on the forex market. The overlap window is 1:00pm to 4:00pm GMT. If you are looking to get into day trading, this is the best time for you to consider trading. Many experts state that these hours are the ideal day trading time because of the fluctuations and liquidity of the market.
You may be wondering what sessions there are in the forex market that you should know about. Unlike the stock market these sessions do not have to do with the opening times of the local exchange. These times are when the traders from different areas will be online. These times are usually the business days of the country when businesses and financial institutes are on the market. There are three sessions that you should know about:
- The UK session starts at 8:00am GMT and ends at 4:00pm GMT. The currencies that are most active during this time are the US dollar, the Euro and the British Pound.
- The US session starts at 1:00pm GMT and ends at 10:00pm GMT. During this session the currencies traded the most are the US dollar, the Yen, the Australian dollar, the Euro and the British Pound.
- The Asian session is actually quiet in comparison to the other sessions. All pairs generally move slowly during this session. The currency that is traded the most during this session is the Yen.
What You Need to Look At
During these high activity times you have to be rather alert. Day traders will see major fluctuations during the US and UK sessions. The most activity is in the overlap of these sessions. This does not mean that you should not consider other factors when looking at the market. If there is a major event or news announcement outside of these times the market will move. It is important that you look at the events that happen outside the overlap time as well.
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