Introduction
The London session is one of the most active and influential trading sessions in the forex market. Traders from around the world participate in this session, taking advantage of its high liquidity and volatility. In this article, we will explore the major forex pairs that are commonly traded during the London session.
1. EUR/USD (Euro/US Dollar)
The EUR/USD currency pair is the most actively traded pair in the forex market. As the two largest economies in the world, the Eurozone and the United States, release significant economic data during the London session, the EUR/USD pair experiences high trading volume and liquidity. Traders benefit from tight spreads and ample opportunities to profit from price fluctuations in this pair.
2. GBP/USD (British Pound/US Dollar)
The GBP/USD currency pair, also known as the “Cable,” is another major pair traded during the London session. The UK’s economic data releases, central bank announcements, and geopolitical developments often take place during this session, leading to increased volatility in the GBP/USD pair. Traders closely monitor this pair for trading opportunities and to capitalize on market movements.
3. USD/JPY (US Dollar/Japanese Yen)
The USD/JPY currency pair is heavily influenced by both the London and Asian sessions. As the London session overlaps with the end of the Asian session, there is increased trading activity and volatility in the USD/JPY pair during this time. Traders interested in trading the Japanese Yen often focus on this pair during the London session.
4. EUR/GBP (Euro/British Pound)
The EUR/GBP currency pair is particularly popular during the London session due to the economic ties between the Eurozone and the United Kingdom. Traders monitor this pair for any developments related to Brexit, economic data releases, and central bank announcements from both regions. The EUR/GBP pair offers opportunities for traders looking to capitalize on the relationship between the Euro and the British Pound.
5. EUR/JPY (Euro/Japanese Yen)
The EUR/JPY currency pair is another major pair that sees significant trading volume during the London session. Traders interested in trading the Euro and the Japanese Yen often focus on this pair due to the high liquidity and volatility it offers. Economic news releases and events from both the Eurozone and Japan can impact the EUR/JPY pair during the London session.
6. GBP/JPY (British Pound/Japanese Yen)
The GBP/JPY currency pair, also known as the “Guppy,” is highly volatile and offers ample trading opportunities during the London session. Traders who are comfortable with higher risk often trade this pair due to its large price swings. The GBP/JPY pair is influenced by economic data releases from the UK and Japan, as well as geopolitical developments.
Conclusion
The London session provides forex traders with numerous opportunities to trade major currency pairs. The EUR/USD, GBP/USD, USD/JPY, EUR/GBP, EUR/JPY, and GBP/JPY pairs are among the most actively traded during this session. Traders should closely monitor economic news releases, central bank announcements, and geopolitical events to make informed trading decisions and take advantage of the high liquidity and volatility offered by these major forex pairs during the London session.
