E Best Time To Day Trade The EUR/USD Forex Pair

The EUR/USD is the most known trading pair and mostly it has the best spread which is a very important thing when deciding which trading pair to trade.

During the day there are times when the pair is not good for trading because volatility is very low and it is hard to make some pips. If you make some pips during smaller volatility that should cover spread costs.

A trader should not plan to trade the whole day, but to wait for the best volatility and volume in the market so trading signals with defined targets can be executed very quickly.

What Impacts EUR/USD Volatility

EUR/USD trading pair volatility is affected by the trading session and news that have a high impact on the currencies.

The EUR/USD pip range depends on the trading session which defines which part of the world is active in the Forex market.

There are four trading sessions:

  1. Sydney trading session
  2. Tokyo trading session
  3. London trading session
  4. New York trading session

All four trading sessions have different trading volatility because the different amount of traders are active at the time.

Most active traders will be when Europe and U.S. traders are active and that is when London and New York trading session is active.

When two trading sessions overlap we will have the most active market and then the volatility will be the highest.

News Impact

The news that have an impact on the EUR/USD volatility are the news about currency rates and economic events that have an influence on the overall GDP of European Union countries or U.S.

Here is a list of events that causes volatility:

  • political events like Brexit, Switzerland moving away from euro peg
  • economical growth shown through GDP and interest rates
  • monetary policy driven by central banks, ECB and FED

Daily EUR/USD Pip Range

When we take a look into trading session distribution(GMT+1) we can see how the volatility changes as time pass during the day.

If we start from the left, which represents the Asian session, Sydney and Tokyo, we can see that the volatility is pretty low and moves around 10 pips.

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Disclaimer: Any Advice or information is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By ...

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Currency Trader 1 year ago Member's comment

Nice article, I'm looking forward to more by you.

Frano Grgic 1 year ago Author's comment

Currency Trader

Thank you for the comment. I will give my best.