When the Sydney, Tokyo, London and New York sessions open and close in your time zone, where they overlap, and where the market's $9.6 trillion a day trades — from the BIS 2025 Triennial Survey.
Source: BIS Triennial Survey 2022
Overlap between Tokyo and London — peak liquidity and volatility
Overlap between London and New York — peak liquidity and volatility
The London-New York overlap is the most active period in forex, exceeding 50% of daily volume
| Pair | Sydney | Tokyo | London | New York |
|---|---|---|---|---|
| EUR/USD | 15–25 | 25–40 | 50–80 | 45–70 |
| GBP/USD | 20–35 | 30–50 | 60–100 | 55–85 |
| USD/JPY | 15–25 | 30–50 | 45–75 | 40–65 |
| AUD/USD | 25–40 | 20–35 | 40–65 | 35–55 |
| GBP/JPY | 30–50 | 40–70 | 75–120 | 65–100 |
The foreign exchange market is the largest and most liquid financial market in the world, with an average of $9.6 trillion traded per day in April 2025, according to the Bank for International Settlements (BIS) 2025 Triennial Survey — up 28% from $7.5 trillion in 2022. Unlike stock exchanges that operate during fixed business hours, forex runs 24 hours a day, five days a week: it opens at 22:00 UTC on Sunday when the Sydney session begins and closes at 22:00 UTC on Friday, and it is closed at the weekend. This is possible because forex is a decentralized over-the-counter (OTC) market with no single exchange — trading passes from one financial centre to the next as they open in sequence. The market is divided into four major sessions, each centred on a key financial hub. Trading never stops during the week, but liquidity, volatility and spreads change sharply depending on which session is active.
The most significant trading opportunities occur during session overlaps, when two major financial centres are active at the same time. The Tokyo–London overlap (08:00–09:00 UTC) is a brief but active hour as Asian traders close positions and European traders enter the market. The London–New York overlap (13:00–17:00 UTC) is the best and most volatile window of the day. It is the only time the world's two largest FX centres are open together, so liquidity is deepest, spreads are tightest, execution is fastest, and most of the day's significant price moves happen here.
The Sydney session runs from 22:00 to 07:00 UTC and kicks off the trading week. It is the smallest session by volume: Australia's FX market averaged about $201 billion a day in April 2025 (Reserve Bank of Australia, BIS survey). Volatility is relatively low, though Australian and New Zealand data releases can create short bursts of movement.
The Tokyo session, also known as the Asian session, runs from 00:00 to 09:00 UTC and draws on three Asian centres: Singapore ($1.49 trillion a day, 11.8% of global turnover), Hong Kong ($883 billion, 7.0%) and Tokyo ($440 billion), according to the April 2025 survey. The Japanese yen dominates activity, and the session often sets the tone for the day — significant moves during Tokyo can carry through to London. Bank of Japan decisions and Japanese indicators (Tankan survey, GDP, CPI) frequently trigger sharp moves in yen pairs.
The London session runs from 08:00 to 17:00 UTC and is by far the largest forex session: it commands 38% of global turnover — about $4.75 trillion per day in April 2025 (Bank of England, BIS survey). Its dominance comes from London's position bridging the Asian and American time zones and its deep pool of institutional participants, so nearly every major currency pair sees peak liquidity during London hours. UK and Eurozone data releases add to its volatility.
The New York session runs from 13:00 to 22:00 UTC and is the second-largest session, handling about 19% of global turnover — about $2.34 trillion per day in April 2025 (New York Fed, BIS survey). It is driven by major US data releases (Non-Farm Payrolls, CPI, FOMC decisions), Federal Reserve communications and equity-market flows. After London closes, New York liquidity gradually thins into the end of the session.
Each session has currency pairs that are naturally more active because of the region's economic activity: Sydney session: AUD/USD, NZD/USD, AUD/JPY and AUD/NZD dominate. Tokyo session: yen pairs lead — USD/JPY, EUR/JPY, AUD/JPY and GBP/JPY. London session: EUR/USD, GBP/USD, EUR/GBP and USD/CHF are the primary movers. New York session: EUR/USD, USD/JPY, GBP/USD and USD/CAD are most active. Trading a pair during its most active session means tighter spreads, better fills and more reliable technical signals. Trading regional pairs off-hours — AUD/NZD during New York, for example — usually means wider spreads and erratic price action.
Sydney and Tokyo: these sessions favour range-bound strategies. Markets often consolidate during Asian hours, and many Asian-session breakouts turn out to be false. London open (08:00–10:00 UTC): one of the most dynamic moments of the day, as institutional orders accumulated overnight flood the market. Breakout strategies work well here. London–New York overlap (13:00–17:00 UTC): the prime window for trend-following strategies. Late New York (20:00–22:00 UTC): liquidity thins and spreads widen. Avoid opening new positions without a specific catalyst. Friday afternoon: many traders close positions before the weekend to avoid gap risk, which can cause counter-trend moves in the last hours of the week.
Wednesday is typically the most volatile and active day, with Tuesday and Thursday also showing above-average volatility. Monday tends to start slower as the market establishes the week's direction, Friday activity often fades in the afternoon as traders close positions, and Saturday and Sunday have almost no liquidity.
The US, Europe and Australia change their clocks on different dates, so session times temporarily shift relative to UTC. When the US enters daylight saving time (second Sunday of March), the New York session starts one hour earlier in UTC. Europe follows on the last Sunday of March, while Australia runs the opposite schedule (DST starts on the first Sunday of October and ends on the first Sunday of April). In the weeks when only one region has switched, the overlap windows expand or contract by an hour. Always check session times against UTC during March–April and October–November.
Liquidity drops sharply during major holidays, spreads widen, and price action can turn erratic. The key dates: Christmas and New Year (Dec 24 – Jan 2): the quietest period of the year. Many institutional desks are closed, liquidity is extremely thin and spreads can be several times wider than normal. US bank holidays: New York session volume drops significantly. UK bank holidays: London session liquidity falls. Japanese holidays: Golden Week (late April – early May) and Obon (mid-August) thin Tokyo session volume. Chinese New Year: Asian session liquidity is lower for about two weeks. During holidays, reduce position sizes or consider staying flat.
