New York is the second-largest forex marketplace, encompassing 19 percent of total forex market volume turnover, according to the 2004 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity published by the Bank for International Settlements (BIS).
It is also the financial center that guards the “back door” of the world’s forex market, as trading activity usually winds down to a minimum from the U.S. afternoon trading period until the opening of the Tokyo market the next day. The majority of transactions during the U.S. session are executed between 8 a.m. and noon, a period with relatively higher liquidity because European traders are still in the market.
For more risk-tolerant traders, British pound/U.S. dollar (GBP/USD), U.S. dollar/Swiss franc (USD/CHF), British pound/Japanese yen (GBP/JPY), and British pound/Swiss franc (GBP/CHF) are good choices for day traders because their daily ranges average about 120 pips. Trading activities in these currency pairs are particularly active because these transactions directly involve the U.S. dollar.
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