Knowing the best time to trade forex is one of the most important factors that affects your profitability. While many beginners focus on strategies and indicators, professional traders know that timing the market is just as important—sometimes even more. In 2025, forex volatility is heavily influenced by global economic conditions, interest rate changes, AI-driven market activity, and major financial news. This guide explains the best trading hours, which forex sessions offer the highest movement, and how you can maximize profits by trading during the right time of day.
Understanding Forex Trading Sessions
The forex market is open 24 hours a day, 5 days a week. But not all hours are equal. Market activity is divided into four major sessions:
1. The Asian Session (Tokyo Session)
- Time: 00:00 – 09:00 GMT
- Pairs: JPY, AUD, NZD
- Volatility: Low to moderate
The Asian session is calm and predictable, making it good for beginners who prefer slow market movement.
2. The European Session (London Session)
- Time: 07:00 – 16:00 GMT
- Pairs: EUR, GBP, CHF
- Volatility: High
The London session is considered the best time to trade forex because it provides strong trends, high liquidity, and tight spreads—perfect for day traders and scalpers.
3. The North American Session (New York Session)
- Time: 12:00 – 21:00 GMT
- Pairs: USD pairs
- Volatility: High
The New York session creates strong movements, especially during economic announcements like NFP, CPI, and interest rate decisions.
4. The Sydney Session
- Time: 22:00 – 07:00 GMT
- Pairs: AUD, NZD
- Volatility: Low
Often considered the quietest session, except when major Australian news is released.
The Overlapping Sessions: The Most Profitable Hours
Some of the best trading opportunities occur when two sessions overlap, increasing volatility and liquidity.
1. London + New York Overlap
- Time: 12:00 – 16:00 GMT
- Volatility: Very High
- Best pairs: EUR/USD, GBP/USD, USD/JPY, XAU/USD
This is the most profitable time to trade forex because the world’s largest financial centers are active at the same time.
2. Asian + London Overlap
- Time: 07:00 – 09:00 GMT
- Volatility: Moderate
- Best for: Breakouts at the start of the European session
During this overlap, the market begins to shift from low volatility to strong trends.
Best Time to Trade by Currency Pair
Choosing the right time to trade depends on the currency pair you focus on.
EUR/USD
- Best time: London & New York overlap
- Reason: Deep liquidity + tight spreads
GBP/USD
- Best time: London session
- Reason: Strong movements and volatility
USD/JPY
- Best time: Asian session & London session
- Reason: JPY activity peaks during Tokyo trading hours
XAU/USD (Gold)
- Best time: New York session
- Reason: Impact of U.S. economic data on gold prices
How Economic News Affects the Best Trading Time
High-impact news releases can create huge price movements. These include:
- NFP (Non-Farm Payrolls)
- CPI Inflation data
- Interest rate decisions
- FOMC meetings
- GDP reports
These events usually happen during the New York session, making it the most volatile period of the day.
Warning:
Beginners should avoid news trading until they have enough experience.
Why Timing Matters in 2025
In today’s algorithm-driven market, timing influences:
- Spread size
- Volatility levels
- Execution speed
- Slippage
- Trend formation
Trading during highly liquid sessions reduces costs and increases profit potential.
Which Session Should You Trade?
It depends on your trading style:
Day Traders:
✔ London session
✔ New York session
✔ London + New York overlap
Swing Traders:
✔ London session
✔ New York session
Scalpers:
✔ London + New York overlap
✔ High volatility hours only
Beginners:
✔ Asian session (slow and stable)
✔ Early London session