Forex is a 24/7 market that operates five days a week, with breaks only for the most significant holidays. Besides traditional currency assets, brokers provide access to speculative trading via:
⚪ Natural gas
⚪ Shares of the largest corporations in the world CFDs.
However, experienced investors know that different days have different trading dynamics, which must be considered by both traders and the owners of brokerage companies.
Monday has two vital peculiarities:
🔵 High probability of a gap formation at the opening
🔵 Low trading activity in the morning
A gap can form for many reasons. The main one lies in unexpected news over the weekend.
Low trading activity is because there are less macroeconomic news and financial statements at the beginning of the week. Besides, most investors and traders who practice short and medium-term online Forex trading strategies do not place pending orders after the weekend.
Tuesday is the revival of trading activity and the beginning of actual work for most Forex traders. The weekend has passed, the plans have been formed, and now it is time to place orders. There is enough macroeconomic data from the countries of the Asia-Pacific region (Australia, New Zealand, Japan, China) and the UK, so it is necessary to plan the day considering news and trends from the European session.
According to trading stats, Wednesday is the busiest day for financial markets. Day traders and mid-term traders accumulate positions until the end of Friday. During this period, volatility indicators are off the charts, especially in the second half of the day.
The American trading session is very sensitive to many important US macroeconomic indicators, including:
🔵 The Fed’s news
🔵 Changes in the interest rate
🔵 The level of oil reserves and other factors that set the tone for the energy market
Thursday is a continuation of the trend of the quote’s movement set on Wednesday. The market is literally ruled by the EU, Great Britain, and New Zealand news on this day. Meanwhile, the Forex dollar/euro, pound sterling, and New Zealand dollar pairs have the highest volatility indicators. It is necessary to pay attention to the preliminary statistics from the US labor market, which highly reflects weekly trends.
Friday can bring both vast profits and losses to a Forex trader. Two factors determine market dynamics:
🔵 Most traders’ close weekly positions before the weekend
🔵 Macroeconomic statistics are published
Traders need to pay attention to North America. Data on employment and Nonfarm Payrolls (NFP) in the US and Canada, GDP, trade balance, as well as a decision on the parameters of Japan’s monetary policy are published on Friday.
Pay special attention to the news and press conferences of the heads of central banks and regulators worldwide. Particular attention should be paid to Fridays, which “close” a month or a quarter.
The Forex market is a global and liquid financial marketplace of the world. Knowing the specifics of market dynamics on different days of the week can help traders and investors.
This is also vital information for potential and current owners of brokerage companies. They must take these parameters into account for the proper organization of business processes. This also applies to software that takes into account all the specifics of the Forex business.
When choosing a software provider, you need to pay attention to the reliability of IT solutions, the availability of round-the-clock technical support, and experience in creating professional software for brokerage companies.
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