The Currency Exchange Market: Why It Never Sleeps

There are no so called "best hours" in a foreign currency exchange market

operating 24 hours a day and conducting deals worth USD 1.5 trillion on a daily
basis. One unique feature of the foreign currency exchange market is that it
never sleeps. It operates 24 hours a day five days a week. There is no central
trading point or location for trading in Forex because deals are executed instantly
all over the world with Forex brokers utilizing different trading platforms to follow
the market and conduct deals.

The constant demand for foreign currencies around the globe requires non-stop
currency trading to be available to banks, governments and enterprises. There is
therefore no centralized trading platform and literally unlimited trading possibilities
exist. Stock markets around the world have fixed working hours and no securities
listed on the stock exchange are ever traded outside these hours. In contrast, the
Forex market currency trading for, say, British pounds will not stop after London-
based financial institutions and dealers go to sleep. The trading in pounds will still
continue in the United States during this time, for instance. The same logic
applies to the bank holidays due to the fact that different national holidays ever
coincide.

Forex market centers are spread around the globe and around the clock. Every
time zone is represented by at least one major market location. The major
European foreign exchange and Forex centers are London, Frankfurt, Paris and
Zurich. New York and Chicago focus the attention of the foreign currency
exchange dealers in the United States, while Tokyo and Hong Kong lead the
pack in Asia. In the Pacific, Sydney and Wellington serve as the leading financial
centers.

Even so, there are more passive and active hours in the Forex market. The
busiest market hours tend to be the times when two or more trading sessions in
different market centers run simultaneously. For example, between 8AM-12PM
EST the markets in London and in the U.S. are open for trading at the same time
while from 3-4AM EST, the London and Tokyo sessions are conducting deals
concurrently.

Different trading days also have their specifics. Many market players do not like
to trade on Fridays because Friday is considered the most capricious trading day
in the foreign exchange market. Probably this is just a popular delusion or
superstition but never the less it exists. The Friday chaotic trading and
unpredictable currency rate movements are partially due to unemployment
statistical data released on Fridays. These data are important economic
indicators and the figures in these reports reflect the currency exchange rates
immediately.

Overall, there is no "bad" or "good" day or hour for Forex trading. A good day
may turn into a bad one in a few minutes due to an emergency event like
resignation of a finance minister or rumors related to a possible government
reshuffle. You will never have a dull time following the foreign currency exchange
market no matter what day of the week or hour of day you choose to visit the
market floor. The Forex market is always ready to go either way.
EURO
The euro (sign: €; code: EUR) is the official currency of the Eurozone. The Eurozone consists of 17 of the
27 member states of the European Union (EU). It is also the currency used by the European Union
institutions. The Eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany,
Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. The
currency is also used in a further 5 European countries (Montenegro, Andorra, Monaco, San Marino,
Kosovo and the Vatican) and is consequently used daily by some 327 million Europeans. Additionally,
over 175 million people worldwide use currencies which are pegged to the euro, including more than 150
million people in Africa.

The euro is the second largest reserve currency as well as the second most traded currency in the world
after the U.S. dollar. As of June 2010, with more than €800 billion in circulation, the euro has the highest
combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.
Based on IMF estimates of 2008 GDP and purchasing power parity among the various currencies, the
Eurozone is the second largest economy in the world.

The name euro was officially adopted on 16 December 1995. The euro was introduced to world
financial markets as an accounting currency on 1 January 1999, replacing the former European Currency
Unit (ECU) at a ratio of 1:1. Euro coins and banknotes entered circulation on 1 January 2002.

The ECB in Frankfurt, Germany, is in charge of the Eurozone's monetary policy

The euro is managed and administered by the Frankfurt-based European Central Bank (ECB)
and the Eurosystem (composed of the central banks of the Eurozone countries). As an independent
central bank, the ECB has sole authority to set monetary policy. The Eurosystem participates in the
printing, minting and distribution of notes and coins in all Member States, and the operation of the
Eurozone payment systems.

The 1992 Maastricht Treaty obliges most EU Member States to adopt the euro upon meeting certain
monetary and budgetary requirements, although not all states have done so. The United Kingdom and
Denmark negotiated exemptions, while Sweden turned down the euro in a 2003 referendum, and has
circumvented the obligation to adopt the euro by not meeting the monetary and budgetary requirements.
All nations that have joined the EU since 1993 have pledged to adopt the euro in due course.

Characteristics of Euro Coins and banknotes

1. All euro coins have a common side, and a national side chosen by the issuing bank.

2. The euro is divided into 100 cents (sometimes referred to as euro cents, especially when
distinguishing them from other currencies, and referred to as such on the common side of all cent
coins). In Community legislative acts the plural forms of euro and cent are spelled without the s,
notwithstanding normal English usage. Otherwise, normal English plurals are recommended and
used, with many local variations such as 'centime' in France.
All circulating coins have a common side showing the denomination or value, and a map in the
background. For the denominations except the 1-, 2- and 5-cent coins that map only showed the 15
Member States which were members when the euro was introduced. Beginning in 2007 or 2008
(depending on the country) the old map is being replaced by a map of Europe also showing countries
outside the Union like Norway. The 1-, 2- and 5-cent coins, however, keep their old design, showing a
geographical map of Europe with the 15 Member States of 2002 raised somewhat above the rest of the
map. All common sides were designed by Luc Luycx. The coins also have a national side showing an
image specifically chosen by the country that issued the coin. Euro coins from any Member State may be
freely used in any nation which has adopted the euro.

The coins are issued in €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c denominations.

The design for the euro banknotes has common designs on both sides. The design was created by the
Austrian designer Robert Kalina. Notes are issued in €500, €200, €100, €50, €20, €10, €5. Each banknote
has its own colour and is dedicated to an artistic period of European architecture. The front of the note
features windows or gateways while the back has bridges. While the designs are supposed to be devoid of
any identifiable characteristics, the initial designs by Robert Kalina were of specific bridges, including the
Rialto and the Pont de Neuilly, and were subsequently rendered more generic; the final designs still bear
very close similarities to their specific prototypes; thus they are not truly generic.

Some of the highest denominations such as the €500 are not issued in all countries due to criminal use,
though they remain legal tender throughout the Eurozone.