The New York session is one of the most important trading sessions in forex, marked by high liquidity, volatility, and major price movements. It is the second-largest forex trading session after London and plays a crucial role in shaping the market’s direction for the day.
New York Trading Session Hours
📅 New York Session Times:
- GMT: 13:00 – 22:00
- EST (New York Time): 8:00 AM – 5:00 PM
- New York Local Time: 8:00 AM – 5:00 PM
🔹 The session overlaps with London from 8:00 AM to 12:00 PM EST (13:00 – 17:00 GMT), which is the most active trading period of the day.
🔹 Roughly 17% of all forex transactions occur in New York, making it the second-largest trading center in the world.
🔹 The U.S. dollar (USD) dominates this session, as it is involved in 85% of all forex transactions.
🔹 Major financial centers like Toronto and Chicago are also active during this session.
Why is the New York Session Important?
📌 1. High Liquidity & Fast Price Movements
- The London-New York overlap (8:00 AM – 12:00 PM EST) provides the highest volatility of the trading day.
- Major currency pairs see strong breakouts and trends during this time.
📌 2. Most U.S. Economic Data is Released
- The U.S. releases crucial economic reports (e.g., NFP, GDP, FOMC meetings) during this session.
- These reports can cause significant price swings in USD pairs.
📌 3. Continuation or Reversal of London Session Trends
- The New York session often extends trends that started in London.
- However, if the market is overextended, reversals can occur, especially in the afternoon session.
📌 4. High Impact on Commodity Prices
- The U.S. dollar affects commodities like gold (XAU/USD), oil (WTI, Brent), and silver (XAG/USD).
- USD/CAD and USD/MXN are heavily influenced by commodity price fluctuations.
📌 5. Friday Reversals Before the Weekend
- Many traders close their positions before the weekend to avoid news risk.
- This often leads to profit-taking and price reversals on Friday afternoons.
Best Currency Pairs to Trade During the New York Session
🔹 Major Pairs (Most Active & Tightest Spreads)
- EUR/USD (Most liquid and heavily traded)
- GBP/USD (High volatility, reacts to U.K. & U.S. data)
- USD/JPY (Active due to overlap with Tokyo)
- USD/CHF (Influenced by U.S. and Swiss economic news)
🔹 Commodity-Linked Pairs
- USD/CAD (Correlated with oil prices and Canadian economy)
- AUD/USD (Moves with commodity prices and risk sentiment)
- NZD/USD (Sensitive to risk sentiment and dairy exports)
🔹 Exotic Pairs (Higher Risk, Higher Reward)
- USD/MXN (Moves with oil prices and emerging market trends)
- USD/TRY (Affected by Turkey’s monetary policies and U.S. economic data)
- USD/ZAR (Correlated with gold prices and risk sentiment)
📌 Why These Pairs?
✔ High liquidity ensures tight spreads and quick execution.
✔ USD pairs move the most due to U.S. economic releases.
✔ Commodity-based currencies react to U.S. news and oil price movements.
New York Session Average Pip Movement
| Currency Pair | New York Session Average Pip Movement |
|---|---|
| EUR/USD | 16 pips |
| GBP/USD | 20 pips |
| USD/JPY | 23 pips |
| AUD/USD | 13 pips |
| NZD/USD | 12 pips |
| USD/CAD | 17 pips |
| USD/CHF | 15 pips |
| EUR/JPY | 25 pips |
| GBP/JPY | 31 pips |
| AUD/JPY | 19 pips |
| EUR/GBP | 9 pips |
| EUR/CHF | 12 pips |
📌 Key Observations:
✔ GBP/JPY, EUR/JPY, and USD/JPY are the most volatile pairs.
✔ Major USD pairs (EUR/USD, GBP/USD) move significantly due to U.S. economic news.
✔ USD/CAD and USD/MXN react to oil prices and U.S. trade data.
💡 Use a Forex Volatility Tool to check real-time pip movement during New York hours.
How to Trade the New York Session Effectively
🔹 1. Trade the London-New York Overlap (8:00 AM – 12:00 PM EST)
- This is the most volatile period of the day.
- Best for breakout strategies, momentum trading, and high-volume trades.
🔹 2. News Trading Strategy (Trade U.S. Economic Reports)
- NFP (Non-Farm Payrolls), GDP, FOMC meetings, and CPI reports cause major moves.
- Best for EUR/USD, GBP/USD, USD/JPY, and gold (XAU/USD).
🔹 3. Trend Following Strategy
- If the London session established a strong trend, the New York session often continues it.
- Best for EUR/USD, GBP/USD, and USD/CAD.
🔹 4. Reversal Trading (Trade Friday Profit-Taking Moves)
- Friday afternoons see price reversals as traders close positions before the weekend.
- Look for overextended trends and fading momentum.
New York Session Breakdown: Three Mini-Sessions
1. Morning Session (8:00 AM – 12:00 PM EST)
✔ Most active time with high liquidity and volatility.
✔ Overlaps with London session, creating strong price trends.
✔ U.S. economic reports are released, causing sharp market reactions.
2. Lunch Hour (12:00 PM – 1:00 PM EST)
✔ Liquidity drops as traders take a break.
✔ Market moves slow down unless a major news event happens.
3. Afternoon Session (1:00 PM – 4:00 PM EST)
✔ Lower volatility as European traders close positions.
✔ Trends either continue or reverse depending on market conditions.
✔ Risk management becomes key as liquidity declines.
📌 4:00 PM – 5:00 PM EST: Trading volume declines sharply as U.S. stock markets close.
Is the New York Session Right for You?
✔ Best for traders who:
- Prefer high liquidity and strong price movements.
- Want to trade USD pairs and news-driven volatility.
- Can trade during U.S. business hours.
❌ Not ideal for traders who:
- Prefer low volatility and range-bound markets.
- Struggle with fast price changes and stop-hunting.
💡 Final Tip: If you love fast price movements and trading news releases, the New York session is perfect for you.
Final Thoughts on the New York Session
✔ The New York session is the second-largest forex session with high liquidity.
✔ It overlaps with London, creating the most volatile period of the trading day.
✔ USD pairs dominate, influenced by major U.S. economic releases.
✔ Commodity currencies like USD/CAD and USD/MXN react to oil prices.
✔ Friday afternoons often see profit-taking and reversals.
📌 Mastering the New York session is key to trading success, especially for those focusing on USD-based pairs. 🚀
