Asia Pacific Session: The Forex Market Never Sleeps

While the western hemisphere is eating dinner and getting for a good night’s rest, there is the eastern hemisphere’s Asia Pacific session in Forex busily engaging in the market. The three biggest markets in Forex trading consist of the Asia Pacific session, the European session, and the North American session. The Asia Pacific trading market opens up at 7pm EST. One of the most intriguing qualities of the Forex market is the fact that it literally never sleeps from Monday until Sunday. While one session is closed, there is another session open somewhere in the world.

The Asia Pacific session in Forex accounts for a major portion of the trading in the total daily volume of trading on the global scale. The biggest financial center in the Asia Pacific session is Tokyo with other centers following closely behind including Wellington, Sydney, Singapore and Hong Kong. Thus, it is clear that the major country players in the Asia Pacific session in Forex are Japan, Australia and New Zealand.

The most common currency pairings sought in the Asia Pacific session in Forex includes the following: Australian Dollar/Japanese Yen, Euro/Japanese Yen, and US Dollar/Japanese Yen to name a few of the many.  It is evidence that the driving force in price movements is based in the island of Japan. Most traders participating in the Asia Pacific session religiously follow the price movements of the Japanese Yen. As the economic powers of China incrementally increase, there can be significant impacts on the Japanese market when changes occur in neighboring China. The Chinese Yuan is one of the newest additions to the Asia Pacific session in Forex (introduced in 2007) and is a key currency to follow as well as the Japanese Yen.

There are also several noteworthy currencies commonly paired in the Asia Pacific session in Forex which are referred to as exotic currencies. For instance, the Japanese Yen sometimes pairs with the South African Rand, but also the Japanese Yen pairs with the Turkish Lira from time to time. These exotic currencies often are characterized by high interest rates. The currencies with higher interest rates attract the attention of major financial institution players taking part in the Asia Pacific session in Forex.

It is a common observation that there are fewer individual investors participating in the Asia Pacific session in Forex. There are major traders based in major financial institutions and central banks from across the globe.

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