The Four Forex Trading Sessions: Sydney, Tokyo, London, New York
Each session has its own personality, volume profile, and favorite pairs.
Researched and written by Laurent Four Sessions, Four Personalities
The forex market's 24-hour cycle is divided into four main trading sessions, each centered around a major financial hub. Each session has distinct characteristics:
The session that opens the trading week. Low volatility, thin liquidity. AUD and NZD pairs are most active. Good for position adjustments, not ideal for active trading.
The main Asian session. Medium volatility. JPY pairs dominate. Major Japanese economic data is released at the start of this session. Also watch AUD pairs due to Australia-Japan trade.
The heavyweight. London is the world's forex capital. Highest volume, tightest spreads, strongest trends. EUR and GBP pairs are most active. Many breakouts begin at the London open.
The USD powerhouse. Most US economic data is released at 8:30am ET (12:30 UTC, 13:30 UTC in winter). High volatility when data surprises. The first 4 hours overlap with London, creating the most active period of the day.
Note: the UTC hours above assume summer time. When the US and UK switch off summer time in late autumn, session hours shift by one hour.
Volume by Session
Key Takeaways
- • London is the largest session by volume (~35% of daily turnover).
- • New York is the second largest, driven by USD and economic data releases.
- • Tokyo is the primary Asian session, with JPY pairs most active.
- • Sydney is the quietest, but it opens the trading week.