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What Currency Pairs Can I Day Trade at Night?

I received the following forex trading question from Loren the other day:

Thanks for all the great trading information.

I would like to start trading the Forex market. The time frame I want to trade in is approximately 7:00 pm to 11:00 pm central time zone. The trades would last one hour or less. Would you know where I can find the best currency pairs to trade during this time frame? Thank you for your help.

Obviously, the evenings for US traders are outside the really concentrated trading time period of the day, which is the Eastern timezone morning when New York and London overlap. A lot of major releases and market events happen during that period, and it’s when the biggest concentration of institutional level traders are active.

Day trading in the evening, as Loren is looking to do, means trading in the Asian morning. While all of the major currency pairs are liquid around the clock, that doesn’t mean they are always active in terms of price movement – at least least for a day trader’s purposes. That means focusing on the pairs most likely to see some action makes sense. In this case, that is going to be pairs which include the Japanese Yen (JPY) and the Australian Dollar (AUD).

By John

Author of The Essentials of Trading

2 replies on “What Currency Pairs Can I Day Trade at Night?”

Hi John,

You are right on in your answer to Loren.

If I could also add, Loren, you should also be aware of illiquidity during Tokyo lunchtime as many banks don’t quote in that period.

Also, make sure you know when important data is out in Japan such as theTankan and when BOJ meetings are. Swings tend to happen at these times just as in the US or Europe when numbers are released.

I have found that this particular time zone(i.e. Asia), while liquid is not necessarily the most active.

Lou Vozza