London (European) Forex Trading Session
Just as the Asian markets begin to wind down, Europe’s financial centers are gearing up—especially London, the heart of the forex world.
What’s the difference between a London rookie trader and a double-decker bus?
The bus actually honors its stop (loss)! 😂
Understanding the London session is essential for forex traders. Known for its high liquidity and strong price movements, it often sets the tone for the entire trading day.
The session runs from 08:00 to 17:00 GMT, overlapping with both the end of the Asian session and the start of the New York session, creating peak trading conditions.
London dominates the forex world, accounting for 43% of all daily transactions, and while it’s often called the “European session,” other financial hubs like Frankfurt, Zurich, and Paris also contribute.
📈 Average Pip Movement in London Session:
| Currency Pair | Average Pips |
|---|---|
| EUR/USD | 10 |
| GBP/USD | 13 |
| USD/JPY | 19 |
| EUR/JPY | 22 |
| GBP/JPY | 22 |
| Others | 6–16 |
Note: These are average values and can vary with market conditions.
🔍 Why Trade the London Session?
- Highest trading volume and liquidity
- Lower spreads due to market depth
- Volatility peaks early, especially when major news is released
- Most trends form during this session and often continue into New York
- Pairs like EUR/USD, GBP/USD, USD/JPY, and yen crosses (e.g., GBP/JPY) are popular choices
⚠️ Volatility can slow during lunch hours and sometimes reverse near session close.