Forex trading sessions: market hours in GMT and New York time

Forex is often described as a market that never sleeps. That is true, but it does not move the same way at every hour. Activity follows the sun: it travels from Oceania to Asia, then to Europe and finally to the Americas. Knowing when the market is active matters as much as knowing what to trade.

The four main sessions

The trading day is traditionally split into four sessions, named after the major financial centres. Their hours are approximate: no bell rings in forex, banks simply start dealing when their desks open. In the table, winter and summer refer to the Northern Hemisphere.

The forex week starts on Sunday at 5 pm New York time (22:00 GMT in winter, 21:00 UTC in summer) as Asia-Pacific opens, and ends on Friday at 5 pm New York time. Prices stop at the weekend, but the news does not: price can reopen on Monday far from Friday's close, which is called a gap.

What sets each session apart

• Sydney: the quietest. Spreads are often wider at the Sunday open. The Australian and New Zealand dollars are at their most active.
• Tokyo: moderate activity, centred on the yen and regional currencies. Moves often stay within a range, unless the Bank of Japan makes an announcement.
• London: the largest forex centre in the world. The European open, around 08:00 London time, often sets the day's trend on the euro, the pound and the Swiss franc.
• New York: the second-largest centre. US data, mostly released at 8:30 am New York time (13:30 GMT, or 12:30 UTC in summer), triggers volatility spikes on every dollar pair.

Overlaps: the key moments

When two sessions are open at the same time, volumes add up. Spreads tighten, orders are filled better and moves are larger.

The London–New York overlap brings together the two largest centres in the world and the release of US data. It often ends around 4 pm London time with the London fix, when large currency flows are executed, which can cause fast moves just before the European close.

The clock-change trap

Europe and the United States do not change their clocks on the same day. The UK and the EU move to summer time on the last Sunday in March and back to winter time on the last Sunday in October. The United States moves its clocks forward on the second Sunday in March and back on the first Sunday in November.

During these gaps, usually two to three weeks in March and one week between late October and early November, New York is only four hours behind London instead of five. US data then lands at 12:30 London time instead of 13:30, and Wall Street opens at 13:30 London time instead of 14:30.

Australia changes in the opposite direction, being in the Southern Hemisphere: it moves to summer time in early October and back to winter time in early April. That is why, seen from London or New York, the Sydney session shifts by two hours between winter and summer. Japan never changes its clocks.

When the market really moves

Beyond the sessions, a few fixed events set the rhythm of the week and concentrate volatility. Knowing them helps you choose your trading hours, or avoid being in a position at the wrong moment.

• The London open, around 08:00 London time, and the hour that follows.
• US data at 8:30 am New York time, especially the monthly jobs report, usually released on the first Friday of the month.
• Central bank decisions: the Bank of England at 12:00 London time, the ECB at 13:15 London time, the US Federal Reserve at 2:00 pm New York time, outside the gap weeks.
• The Wall Street open, at 9:30 am New York time (14:30 GMT, 13:30 UTC in summer), for US indices and stocks.
• Friday evening, when liquidity thins out before the weekend close.

Conversely, the end of the New York session and the Asian session are often quiet on European pairs. Spreads can widen there, especially around 5 pm New York time, when brokers roll over to the next trading day.