Introduction
The London session is one of the most active and influential forex trading sessions. It overlaps with both the Asian and New York sessions, creating high liquidity and increased trading opportunities. Traders around the world eagerly participate in the London session to take advantage of its volatility. In this blog post, we will explore some of the popular forex pairs that are actively traded during the London session.
1. EUR/USD (Euro/US Dollar)
The EUR/USD pair is the most traded forex pair globally and experiences significant activity during the London session. As the Eurozone and the United States are major economic powerhouses, any news or economic data releases during this session can have a substantial impact on the exchange rate between the euro and the US dollar. Traders closely monitor this pair for potential trading opportunities.
2. GBP/USD (British Pound/US Dollar)
The GBP/USD pair, also known as Cable, is another highly traded forex pair during the London session. The British pound and the US dollar are both major currencies, and their exchange rate is influenced by various economic and political factors. Traders pay close attention to news releases from the United Kingdom and the United States during this session, as they can significantly impact the GBP/USD pair.
3. EUR/GBP (Euro/British Pound)
The EUR/GBP pair is particularly popular during the London session due to the overlapping market hours of the Eurozone and the United Kingdom. Traders analyze the exchange rate between the euro and the British pound to identify potential trading opportunities. Economic data releases and geopolitical developments in both regions can impact this currency pair.
4. GBP/EUR (British Pound/Euro)
The GBP/EUR pair is the reverse of the EUR/GBP pair and is also actively traded during the London session. Traders monitor this pair to take advantage of potential price movements resulting from economic events and news releases in the Eurozone and the United Kingdom. The exchange rate between the British pound and the euro can be influenced by factors such as interest rate decisions, GDP reports, and political developments.
5. EUR/JPY (Euro/Japanese Yen)
The EUR/JPY pair attracts significant attention during the London session due to the overlap with the Asian session. Traders monitor this pair to capitalize on potential price movements resulting from economic data releases and news from both the Eurozone and Japan. As both the euro and the Japanese yen are major currencies, this pair offers ample trading opportunities.
Conclusion
The London session is a highly active period for forex trading, and several currency pairs experience increased volatility and trading volume during this time. The EUR/USD, GBP/USD, EUR/GBP, GBP/EUR, and EUR/JPY pairs are among the most actively traded forex pairs during the London session. Traders closely monitor these pairs for potential trading opportunities, as economic data releases, news events, and geopolitical developments can significantly impact their exchange rates. By staying informed and analyzing these currency pairs, traders can take advantage of the opportunities presented during the London session.