hn88's Blog

The Forex market has a huge advantage over the other investment markets - it's open 24 hours a day, six days a week. Whereas the commodities and stock market operates five days a week (Monday through Friday) during normal business hours, the Forex market continues its activity around the clock. If you want to trade at 2:00 am EST Monday morning, feel free to place your trade. If you would like to invest at 9:00 pm Thursday night when you have the time to concentrate on the market, simply place your trade on one of the many online Forex trading systems. However, even though the market is considered a 24-hour market, it's important to know when the market is actually active and when is the best time to place a trade on the market.

Actual operating hours

Even though the Forex market is open 24 hours a day, each financial center (i.e. New York, London, Frankfort, Tokyo, and Australia) has its own operating hours, which are usually from 8:00 am - 4:00 pm, local time. That means if it's 8:00 am (Tokyo time) on Monday morning, the Tokyo market will be open for trading even though it's 10:00 pm EST, on Sunday night. You could therefore take advantage of trading on the Forex market late Sunday night from your New York apartment.

Overlapping of hours

With so many financial centers around the globe, you will have times when two or more markets overlap. For instance, the New York and London markets overlap from 8:00 am to 12:00 pm EST, while the London and Tokyo markets overlap from 3:00 am to 4:00 am EST. The Sydney and Tokyo markets also overlap from 7:00 pm - 2:00 am EST. These overlapping periods are the best time to trade since volume (liquidity) is at it's greatest.

Other good times to trade

Besides the overlapping periods, it's best to trade at the following times:

• During the middle of the week (shows most movement)
• During trading hours of the three largest markets - London, New York, and Tokyo.

Times to avoid

It's best to avoid the following times/days:

• Sundays (limited volume)
• Fridays (unpredictable)
• Holidays (limited volume)
• Release of economic reports (volatility)
• 4:00 pm - 6:00 pm EST (low market volume).

by Harman Gilly

Online Forex trading system platforms provide investors the chance ot invest in the largest investment market around.

Source:

Strong U.S. consumer price data led to a lower than expected federal reserve interest rate cut, causing the strongest one-day dollar rally against the Euro since May, 2005. By the end of the day Friday the 14th, the Euro fell 1.5 percent to 1.4412, the lowest it has been since October. This is the third week in a row that the dollar has rallied against major currencies.

Strong consumer spending reports have served to partially abate worries that the mortgage crisis would force the US economy into a recession, and widespread inflationary concerns would seem to point to a continued conservative approach to interest rate cuts by the feds, which is more good news for the greenback.

Many analysts are now predicting the dollar rally will continue in the short term, fingering 1.43—or even 1.40—as reasonable support levels. Moreover, there has been a rising chorus of voices saying that the dollar will rebound in 2008, due to shrinking budget and trade deficits. If we are correct in assuming that the Fed will be conservative in cutting interest rates, this will lead to an increased international appetite for investment in the US market, creating greater demand for the dollar.

On the other hand, we are wary that the dollar rally is simply a correction, rather than a trend reversal. Furthermore, we would not be surprised to see another test of the $1.50 level in the short term, even if prospects for the dollar are good in 2008.

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