When traders come to the Forex market, they always say that it is the only financial market in the world that is operating around the clock, six days a week. Though in principle this statement is correct, in practice Forex trading consists of three various daytime sessions. Understanding of the nature and features of each session is necessary for each trader who is trying to earn money on the opposite movements of the currency market. In short: if you wish to trade on intraday basis, then you have to know about the secret rhythms of Forex.

Auctions follow the sun around the world. Though Japan is a country of rising sun, it is the unofficial center of the first of three significant sessions; trade in the Pacific region begins in Wellington, New Zealand and Sydney, Australia, before the opening of trading in Tokyo. While traders in New York think of Sunday dinner, in Asia it has already started the Monday auction. Currencies are available for dealing from 17:00 EST Sunday.

However, because the morning is traditionally a time of tranquility and relaxation for most persons who just rub their eyes after sleeping, the Asian session is usually the quietest and least volatile in the market. The smallest trading volume of three largest centers of currency trading is in Tokyo. Only 15% of three trillion circulation of Forex fall on Tokyo session. Very often during Asian session the range of motion of the main pair EUR / USD is only 20-30 pips, in this case due to low liquidity the spread between the bid and ask increases. So, for the pair GBP / USD very often spread grows to 6 pips instead of usually 3 pips during European and U.S. sessions.

In most cases, the most marked price movements during the Asian session happen on the charts of “commodity” currencies of Australia and New Zealand. Very often in the time gap between 17 and 19:30 EST it is announced economic news about these countries. News about Japan usually are released in the interval between 19:00 and 21:00 EST, but the influence of economic news in Japan for the Japanese yen is usually significantly less than that of the same news for Australia and New Zealand for their domestic currencies. Why does this happen? The respond lies in interest rates and the carry trade.

In the late 80-ies in Japan the bubbles of the stock and real estate market went phut, as a result the country was in a long-term deflationary cycle, from which it will have to get out. As a result, the Bank of Japan solved to cut interest rates to 0% in order to stimulate demand against the background of losses in the banking system. This policy is known as “zero-rate policy» – ZIRP. Little by little, the economy has revived thanks to export increase, but the discount rate was increased only to 0.5% or 50 basis points, after the Bank of Japan refused the “policy of zero-rate” 18 months ago. Taking into consideration the shaky consumer demand in Japan, most market participants believe that rising of rates in Japan will be very slow, because the Japanese regulator fears to break the weak economic recovery. Thus, the yen is the most low-income primary currency in the world.

Currently people are searching for additional or even primary sources of income as never. World economy is still in tough condition, and to find a well-paid job is not that easy task. And forex is one of the ways to make some money. To trade successfully one has to be aware of events on the market, so live forex news is of great help here. Those who don’t know where to get fx news can make use of the Internet. Just type “forex news trading“, for example, in Google or other search engine and you will get many news sources to choose from.