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Currency pairs can therefore be broadly broken down into three categories:

1/ Currencies sharing the same native time zone:

Currency pairs such as EURSEK, EURNOK, EURCHF, USDCAD, and within an hour of each other; GBPCHF, AUDJPY and USDMXN, all share the same native trading hours.

This gives these currency pairs particularly good liquidity during their native trading sessions, particularly those whose native trading sessions occur during the London afternoon.

2/ Currencies with overlapping native time zones:

Currency pairs such as GBPUSD, EURCAD, USDCHF, EURUSD, AUDUSD and NZDUSD have native time zones that overlap.

Therefore a move occurring at 5am in EURCAD is more likely to be order driven, as there is little volume, news, nor economic data likely to have come out affecting that pair during those hours and would make such a move less likely to be a genuine market move.

3/ Currencies with separate time zones:

Currency pairs such as EURAUD, GBPJPY and CHFJPY operate in two very distinct sessions, with their native trading hours not overlapping at all.

 

 

Local Time in London

Currency

GMT

Start

End

New Zealand (NZD)

+13

18:00

04:00

Australia (AUD)

+10

21:00

07:00

Japan (JPY)

+9

22:00

08:00

Hong Kong (HKH)

+8

23:00

09:00

Singapore (SGD)

+8

23:00

09:00

Turkey (TRL)

+2

05:00

15:00

Europe (EUR)

+1

06:00

16:00

Switzerland (CHF)

+1

06:00

16:00

Norway (NOK)

+1

06:00

16:00

Sweden (SEK)

+1

06:00

16:00

Great Britain (GBP)

+0

07:00

17:00

Canada (CAD)

-5

12:00

22:00

United States (USD)

-5

12:00

22:00

Mexico (MXN)

-6

13:00

23:00

Figure 1

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