London Session

Just when Asian market participants are starting to close shop, their European counterparts
are just beginning their day.
While there are several financial centers all around Europe, it is London that market
participants keep their eyes on.
Historically, London has always been at a center of trade, thanks to its strategic location. It's
no wonder that it is considered the forex capital of the world with thousands of businessmen
making transactions every single minute. About 30% of all forex transactions happen during
the London session.

Below is a table of the London session pip ranges of the major currency pairs.
Pair

London

EUR/USD

114

GBP/USD

127

USD/JPY

66

AUD/USD

83

NZD/USD

72

USD/CAD

96

USD/CHF

102

EUR/JPY

129

GBP/JPY

151

AUD/JPY

107

EUR/GBP

61

EUR/CHF

109

Here are some neat facts about European session:

Because the London session crosses with the two other major trading
sessions--and with London being such a key financial center--a large chunk
of forex transactions take place during this time. This leads to high
liquidity and potentially lower transaction costs, i.e., lower pip spreads.

Due to the large amount of transactions that take place, the London
trading session is normally the most volatile session.

Most trends begin during the London session, and they typically will
continue until the beginning of the New York session.

Volatility tends to die down in the middle of the session, as traders often
go off to eat lunch before waiting for the New York trading period to begin.

Trends can sometimes reverse at the end of the London session, as

European traders may decide to lock in profits.

Which Pairs Should You Trade?

Because of the volume of transactions that take place, there is so much liquidity during the
European session that almost any pair can be traded.
Of course, it may be best to stick with the majors (EUR/USD, GBP/USD, USD/JPY, and
USD/CHF), as these normally have the tightest spreads.
Also, it is these pairs that are normally directly influenced by any news reports that come out
during the European session.
You can also try the yen crosses (more specifically, EUR/JPY and GBP/JPY), as these tend to
be pretty volatile at this time. Because these are cross pairs, the spreads might be a little
wider though.
Next up, we have the New York session, a jungle where dreams are made of. Hey, isn't that an
Alicia Keys song?

Read more: http://www.babypips.com/school/londonsession.html#ixzz1zdMPvqMQ