Breaking down the time zones

Although many stock and commodity markets technically trade nearly 24 hours per day, liquidity often dries up in overnight sessions. Most price moves are limited to the day session, which ranges from 8:20 a.m. to 4:15 p.m. ET, depending on the market. However, currencies are sometimes more active at night in the U.S. when European and
Asian traders are in control. Therefore, currency pairs may trade in choppy, narrow ranges during the day.

The foreign exchange market opens in Sydney, Australia on Sunday at 6 p.m. ET, takes a one-hour break each day at 5 p.m. ET and closes at 5 p.m. Friday. Table 1 shows a handful of important times and events in a typical 24-hour period, starting from the 5 p.m. ET close in New York. (The table is not a complete list of events; European and Asian economic reports are not included.)

The euro and the U.S. dollar are most active during business hours in Europe and the U.S. The largest 12-hour period of volume is from 3 a.m. to 3 p.m., because the German Dax index opens at 3 a.m. and the euro currency futures pit at the Chicago Mercantile Exchange (CME) closes at 3 p.m. ET. But euro futures also move when Asian markets are open (6 p.m. to 2 a.m.), because moves in the euro/Japanese yen affect the U.S. dollar and the relationship between the dollar and the yen.