Introduction
The London session is one of the most active trading sessions in the forex market. Traders around the world eagerly participate in this session due to its high liquidity and volatility. In this blog post, we will explore the London session forex pairs, which are the currency pairs that exhibit the most activity during this session. Let’s dive in!
1. Major Currency Pairs
The major currency pairs are the most actively traded forex pairs globally, and they also dominate the London session. These pairs include:
1.1. EUR/USD
The EUR/USD pair represents the euro against the US dollar. It is the most heavily traded currency pair in the forex market and is highly influenced by economic data releases from both the Eurozone and the United States.
1.2. GBP/USD
The GBP/USD pair, also known as the “cable,” represents the British pound against the US dollar. It is particularly popular during the London session, as it involves two major currencies and is influenced by economic news from both the UK and the US.
1.3. USD/JPY
The USD/JPY pair represents the US dollar against the Japanese yen. It is heavily traded during the London session due to the active participation of Japanese financial institutions and traders. Economic news from both the US and Japan significantly impact this currency pair.
2. European Currency Pairs
European currency pairs involving the euro or the British pound are also actively traded during the London session. Some popular pairs in this category include:
2.1. EUR/GBP
The EUR/GBP pair represents the euro against the British pound. It is influenced by economic news from both the Eurozone and the UK, making it an attractive choice for traders during the London session.
2.2. EUR/CHF
The EUR/CHF pair represents the euro against the Swiss franc. While Switzerland is not part of the European Union, the Swiss franc is closely linked to the euro. Economic news from both the Eurozone and Switzerland can impact this currency pair.
3. Commodity Currency Pairs
Commodity currency pairs, which involve currencies of countries heavily reliant on commodity exports, also see significant activity during the London session. Some notable pairs in this category are:
3.1. AUD/USD
The AUD/USD pair represents the Australian dollar against the US dollar. It is influenced by economic news from Australia, such as employment data, GDP figures, and commodity prices.
3.2. USD/CAD
The USD/CAD pair represents the US dollar against the Canadian dollar. Economic news from both the US and Canada, along with fluctuations in oil prices, can impact this currency pair.
Conclusion
The London session forex pairs encompass a wide range of currency pairs, including major currency pairs, European currency pairs, and commodity currency pairs. These pairs see significant activity during the London session due to their liquidity and the economic news releases that impact them. By understanding the characteristics and influences of these forex pairs, traders can make more informed trading decisions during the London session.