If you are a night owl and looking to maximize your Forex trading potential, you’re in luck! A group of traders from Traders Union (TU) have compiled an informative guide on the best Forex pairs to trade at night. Whether you’re a beginner or an experienced trader, this information will be of great value to you. The article covered the best currency pairs to trade at night, backed up by detailed research and expert analysis. Stay tuned!
Understanding сurrency pairs
Currency pairs simply show the value of one currency compared to another. Think of it like a ratio: in the EUR/USD pair, if it’s at 1.302, 1 euro is equal to 1.302 U.S. dollars. TU’s analysts often highlight the EUR/USD pair as a popular one, where traders swap euros for U.S. dollars in their trades.
Currency pairs are grouped into three main categories.
Majors – these always involve the U.S. dollar and are frequently traded. Examples:
- EUR/USD
- USD/JPY
- GBP/USD
Crosses – these are pairs of two major currencies, but don’t include the U.S. dollar. Some of the commonly traded crosses are:
- EUR/GBP
- GBP/JPY
- EUR/CHF
Exotic Pairs – these combine a major currency with one from a smaller or emerging market. They can be riskier but also offer potential rewards. A few examples include:
- USD/SGD
- USD/HKD
- EUR/TRY
According to experts at Traders Union, while beginners might find comfort in trading majors due to their stability, seasoned traders often dabble in exotics for potentially higher returns, albeit with added risk.
Navigating night trading in Forex
Forex night trading means buying and selling currencies after regular market hours. The exact times can vary, depending on the exchange. Traders can do this because it allows them to react to global events or financial news that occur outside of normal market hours. If you’re thinking about night trading, the experts suggest keeping track of the hours for each exchange and knowing when different regions’ trading times overlap. Thanks to this, the chances of buying or selling will increase. Just remember to stay updated on worldwide news, so you can make smart trading choices even at night!
Top currency pairs for night trading
Based on the guidance of TU’s experts, here are some top pairs you might want to explore:
Night session favorites
- AUD/NZD – often shows significant price movements during the night.
- AUD/JPY and NZD/JPY – are known to provide trading opportunities during overnight sessions.
Daily trading champions
- EUR/USD (Fibre) – this pair dominates with about 23% of daily trade volume.
- USD/JPY (Gopher) – offers predictable price movements, contributing to 13.5% of daily trades.
- GBP/USD (Cable) – known for its volatility, it covers about 6% of daily trade volume.
- AUD/USD (Aussie) -influenced by commodity prices, it also accounts for 6% of daily trades.
- USD/CAD – tied closely to oil prices, it represents 5% of daily trade volumes.
- USD/CHF (Swissie) – a popular choice, contributing to around 5% of daily global trades.
With this list, both new and experienced traders can better navigate the world of Forex during the nighttime hours.
Conclusion
Navigating the 24-hour world of Forex trading presents both challenges and opportunities. For those drawn to the stillness of night trading, understanding the dynamics of specific currency pairs becomes crucial. Traders Union analysts provide invaluable insights into the most potent pairs for nighttime endeavors, from the volatility of the GBP/USD to the predictable movements of the USD/JPY. By leveraging this knowledge and staying updated on global economic shifts, traders-whether novice or seasoned — can optimize their strategies, ensuring they are well-prepared to seize opportunities, no matter the hour.
Modupe Gbadeyanka 
Adedapo Adesanya