Currency analyst

At what time it’s better to trade? Some hints from Deutsche Bank

On its special report the DB shared with some tricks of the trade in forex market. It made a research on the intraday seasonality in forex spot market and found out a very efficient win-win strategy for trading different currency pairs. We’ve decided to bring you up to date.

Deutsche Bank made some calculations, skimmed through the significant intraday patterns and managed to find out that forex market moves during the common London-NY time zone are similar to overall spot moves on the day. And, in contrast, trading during the Asia and New York afternoon sessions is not so informative. Nice observation, isn’t it?

DB has also managed to find out that some currencies possess a very strong intraday seasonality. As it turned out, the EUR/USD and GBP/USD currency pairs are the most perceptive ones to these intraday market moves. They weaken significantly during the morning hours of London session, but strengthening during NY afternoons. So, there is a gospel truth about exchange rates of almost all currencies: the currencies tend to weaken during their domestic trading hours and strengthen outside of domestic hours. There is one exception from this rule, though – the JPY – it often strengthens during the Tokyo time zone. 

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