What are the best hours for Forex trading?

The hours that you choose for trading can also impact the results and are actually very important. It is good to know when to take action and when to avoid trading.

A very important factor related to the best or worst hours for trading is the release of economic indicators. Economic indicators are very important statistics that indicate the direction of an economy, such as unemployment rate, quits rate, housing starts, consumer price index, consumer leverage ratio, industrial production, bankruptcies, gross domestic product, broadband internet penetration, retail sales, stock market prices etc. They are used by analysts to interpret investment opportunities, for the present or the future and to judge the overall health of an economy. This means that, naturally, there is going to be a lot of buzz and instability on the market when these indicators are released; a generally good trade could be lost and your stop loss limits can be breached temporarily.

The best trading hours are, in general, 10:00 to 12:00 GMT. Around this time, the trading volume is rather high and there aren’t too many indicators to disrupt the trading activity.

The most dangerous hour is 12:30 GMT, since this is the time when American indicators are normally released.
The most volatile time for Australian Dollar trading is around 01:30 GMT. Most indicators are released at this time, while a few others also appear around 04:30.

The Swiss Franc is dangerous to trade around 07:00 – 07:30 GMT. This is when publications appear most of the times.

The British Pound meets the most volatile hour at 08:30 GMT. Almost all of the economic indicators are released exactly at this hour, since the time there is really strict. There are also some releases around 23:00 GMT, but the 08:30 keeps the major ones.

The Euro is volatile for the longest time. Most indicators come from Germany and France, so the most dangerous hour remains 09:00 GMT, but any time between 06:00 and 10:00 is not very stable.

The Canadian Dollar is most vulnerable around 12:30 GMT, when the biggest number of indicators is released, but the hours to avoid extend from 11:00 to 14:00.

The US Dollar is affected, of course, by the release of the American indicators, which happens around 12:30 GMT, as it was previously mentioned. The stock exchange opens an hour later and then, at 14:00 GMT, a few more publications are made. The trading volume is also very high in this time window.

The New Zealand Dollar is vulnerable around 22:45 GMT and 21:00 GMT.

The Japanese Yen is affected around 23:50 GMT, when almost all indicators are published. Very few publications are made at different times, the most significant being 23:30.

Note that those hours are correspondent to summer time in the northern hemisphere. Adapt the list according to the winter time by shifting one hour if necessary.