Currency pairs represent the value relationship between two currencies. In the forex market, currencies are always traded in pairs because when you buy or sell one currency, you are simultaneously selling or buying another. For example, when you buy foreign currency for a trip abroad, you pay in U.S. dollars (USD) and receive the foreign currency in exchange.
Each currency pair consists of two components: the base currency and the quote currency. The base currency is listed first (on the left), and the quote currency is listed second (on the right). The price of a currency pair indicates how much of the quote currency is required to purchase one unit of the base currency.
For instance, in the EUR/USD currency pair, the euro (EUR) is the base currency, and the U.S. dollar (USD) is the quote currency. If the price of the pair is 1.1000, it means that 1.10 U.S. dollars are needed to buy one euro, or conversely, one euro is worth 1.10 U.S. dollars.
Understanding Currency Pairs
The forex market operates 24 hours a day, five days a week, providing opportunities for highly leveraged trading with lower margin requirements compared to equity markets. However, it’s important to be familiar with the most traded currency pairs to navigate this market effectively.
Among the most traded currency pairs are:
1. EUR/USD (Euro/US Dollar): Known as “Fiber,” this pair is the most traded in the forex market, reflecting the prominence of the European Union and U.S. economies. It accounts for over 22% of the market share.
2. USD/JPY (US Dollar/Japanese Yen): Referred to as “Gopher,” this pair is the second most actively traded, with a market share of 13.5%. It is sensitive to political sentiment between the U.S. and Japan and responds to changes in Japanese interest rates.
3. GBP/USD (British Pound/US Dollar): Known as “Cable,” this pair represents about 9.5% of the market share. It is influenced by the economic health of the U.K. and the U.S., and it tends to correlate positively with the EUR/USD.
4. USD/CNY (US Dollar/Chinese Yuan): This pair represents the relationship between the U.S. dollar and the Chinese yuan, with a market share of 6.6%. The U.S.-China trade relationship significantly impacts this pair.
5. USD/CAD (US Dollar/Canadian Dollar): Known as “Loonie,” this pair has a market share of 5.5%. The price of oil, a major Canadian export, plays a crucial role in determining the value of this pair.
6. AUD/USD (Australian Dollar/US Dollar): Called the “Aussie,” this pair holds 5.1% of the market share. The value of the Australian dollar is closely tied to the country’s export-driven economy.
How Currency Pair Prices Are Determined
The prices of currency pairs are influenced by various factors, including the economic health of the involved countries, interest rates, trade relationships, and political stability. For example, if the EUR/USD pair is priced at 1.15, it means that 1.15 U.S. dollars are required to purchase one euro. If the price rises to 1.20, the euro has appreciated relative to the U.S. dollar, meaning it now costs more dollars to buy a euro.
Currency pair prices fluctuate constantly due to the high volume of orders in the forex market, particularly for major pairs like EUR/USD and USD/JPY.
Concluding Thoughts
Currency pairs are the backbone of forex trading, representing the value relationship between two currencies. Understanding how these pairs work, including the factors that influence their prices, is essential for successful trading. The most traded currency pairs, such as EUR/USD and USD/JPY, offer high liquidity and tight spreads, making them popular choices for traders. However, traders should stay informed about economic and political events that can impact currency pair values to make well-informed decisions in the dynamic forex market.
Many first-time forex traders dive into the market with enthusiasm, tracking various economic calendars and trading aggressively on every data release. The 24-hour, five-days-a-week nature of the forex market seems like an endless opportunity to trade, but this approach can quickly deplete a trader’s resources and lead to burnout, even for the most dedicated individuals. Unlike Wall Street, which operates on regular business hours, the forex market runs on the business hours of four different global trading hubs, making it active all day and night.
So, how can traders avoid staying up all night and still capitalize on the market? Understanding the market hours and setting appropriate trading goals can significantly increase a trader’s chances of success within a manageable schedule.
The Forex Market Hours of Operation
Let’s start with an overview of the four major forex markets, listed in Eastern Standard Time (EST):
New York
New York (open 8 a.m. to 5 p.m.) is the second-largest forex platform globally, heavily monitored by foreign investors since the U.S. dollar is involved in 90% of all trades. Movements in the New York Stock Exchange (NYSE) can significantly impact the dollar, as mergers and acquisitions can instantly alter its value.
Tokyo
Tokyo, Japan (open 7 p.m. to 4 a.m.), is the first Asian trading center to open and handles the bulk of Asian trading, slightly ahead of Hong Kong and Singapore. Currency pairs such as USD/JPY, GBP/USD, and GBP/JPY are particularly active during this time, with the USD/JPY being a key pair to watch due to the Bank of Japan’s influence on the market.
Sydney
Sydney, Australia (open 5 p.m. to 2 a.m.), marks the official start of the trading day. While it is the smallest of the major markets, it sees significant activity when markets reopen on Sunday afternoon, as individual traders and financial institutions regroup after the weekend break.
London
London, Great Britain (open 3 a.m. to noon), is the global hub of currency trading, accounting for roughly 43% of global forex activity. London also significantly impacts currency fluctuations due to the presence of the Bank of England, which sets interest rates and controls GBP monetary policy. Forex trends often originate in London, making it a key market for technical traders.
The Best Hours for Forex Trading
Forex trading’s uniqueness lies in its continuous operation from 5 p.m. EST on Sunday to 5 p.m. on Friday. However, not all hours are equally favorable for trading. The optimal time to trade is when the market is most active, typically during overlaps between open markets. This heightened activity leads to greater currency pair fluctuations and increased trading opportunities.
When only one market is open, currency pairs may be confined to a narrow pip spread, around 30 pips of movement. However, when two markets overlap, movement can easily exceed 70 pips, especially during significant news releases.
Overlaps in Forex Trading Times
The best trading times occur during market overlaps, which provide higher price ranges and more trading opportunities:
– U.S./London (8 a.m. to noon): This overlap is the most active, accounting for more than 70% of all trades. The U.S. dollar and euro are the most traded currencies during this period, making it the ideal time to trade due to high volatility.
– Sydney/Tokyo (2 a.m. to 4 a.m.): While not as volatile as the U.S./London overlap, this period still offers opportunities with increased pip fluctuation. The EUR/JPY pair is particularly active during this time.
– London/Tokyo (3 a.m. to 4 a.m.): This overlap sees the least activity, as it only lasts for one hour and occurs when most U.S.-based traders are not active.
Impact of News Releases on Forex Markets
While understanding market hours and overlaps is essential, news releases also play a crucial role in forex trading. Major economic announcements can significantly impact currency values, even during typically slow trading periods.
Key news events to monitor include:
– Interest rate decisions by central banks, as higher interest rates often attract global investment, strengthening the currency.
– CPI data, which measures inflation and can influence central bank policy.
– Trade deficits, indicating cross-border capital flows that affect exchange rates.
– Consumer consumption, a major driver of economic growth in the U.S. and globally.
– Central bank meetings, where future interest rate moves may be hinted at.
– Consumer confidence, which impacts spending and overall economic health.
– GDP data, reflecting the total economic output of a country.
– Unemployment rates, as lower unemployment typically correlates with stronger economic growth and a stronger currency.
– Retail trade data, which indicates consumer spending and drives economic growth.
Why Do Forex Markets Trade Around the Clock, but Not Stock Markets?
Forex markets operate “24/7” because different exchanges worldwide trade the same currency pairs. In contrast, stock exchanges typically list and trade shares within their own country, so international stock markets are not trading the same stocks simultaneously. Even with foreign stocks listed in the U.S. as ADRs, these shares remain closed during certain hours when the foreign shares are open, and vice versa.
Why Is Forex Liquidity Important?
Liquidity refers to how easily an asset can be bought or sold at a fair price. In highly liquid markets, the bid/ask spread is narrower, and larger trades can be executed without significantly moving the market. In contrast, illiquid markets have wider spreads and less depth, making it harder to trade without impacting prices. Liquid currency pairs are those with high trading volumes and activity.
Which Are the Most Liquid Currencies?
The most traded currencies globally include the U.S. Dollar (USD), Euro (EUR), Japanese Yen (JPY), British Pound (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), and Swiss Franc (CHF). The four major currency pairs are EUR/USD, USD/JPY, GBP/USD, and USD/CHF.
Concluding Thoughts
To maximize forex trading success, it’s important to take advantage of market overlaps and closely monitor news releases. By trading during more volatile periods and keeping an eye on economic data, both part-time and full-time traders can create a schedule that allows them to capitalize on opportunities without feeling overwhelmed by the 24/5 nature of the forex market.
https://synapsetrading.com/wp-content/uploads/2026/10/when-is-the-best-time-to-trade-forex-top-3-forex-trading-hours-card.webp6301200The Synapse Networkhttps://synapsetrading.com/wp-content/uploads/2026/10/synapse-logo-horizontal-light.pngThe Synapse Network2023-08-10 06:16:372026-10-02 14:19:08When is the Best Time to Trade Forex? (Top 3 Forex Trading Hours)
As most of you already know, Russia recently invaded Ukraine from multiple directions, trying to take over the whole country, and creating a potential WW3 disaster.
But how did this all start? Who are the different parties? And how can it end?
It probably started way back in the Cold War between the Western powers and the USSR, and after the dissolution of the USSR, many of the former countries of the USSR (Moldova, Lithuania, Latvia, Estonia) near the Russian border started to join NATO and the EU, which started to make Russia worried.
Afraid that Georgia might be next, Russia invaded Georgia in 2008, under the pretext of supporting South Ossetia (a pro-Russian breakaway state in Georgia), as a warning to them not to get too close to the West.
Without going back to the whole Cold War era, the current conflict can be traced back to 2014 when Ukraine held protests to oust the current government (which was more pro-Russia), and replaced it with the current government (more pro-EU and NATO).
Ukraine is a huge country, made out of many ethnic groups, but mainly the East is more pro-Russian (in terms of language of culture), as compared to the West which is more liberal and speaks Ukrainian. Note that this does not mean the East wants to merge with Russia, it’s just that they have more common roots.
When this change of government happened (still in 2014), Russia (or rather Putin), was worried that this might lead to Ukraine being closer to the West (US, EU, NATO), which Putin considers as enemies from the Cold War era, so to prevent that from happening, he decided to invade Ukraine starting with the more “pro-Russian” territories (Crimea, Donbas area which includes Donetsk and Luhansk).
It is not clear exactly whether the people in these regions really want to be part of Russia. My guess is that a certain portion of them do, which Russia took advantage of, using propaganda to stoke separatist sentiments, while sending people and troops to catalyse conflict.
Crimea was quickly taken over via convert operations, whereas the war in Donbas has been ongoing since 2014, with the Ukrainian government armies (and volunteers) fighting against separatists and Russian military. (Although Russia does not admit that they are sending in troops to support the conflict.) This war has been going on at the East edge of Ukraine since 2014, claiming an estimated 10,000 lives so far.
With this ongoing war, it is no surprise Ukraine wants to join the EU and NATO to protect itself from Russia, but the closer they get to the West, the more Russia gets agitated, till Putin finally decided to go for an all-out invasion of the whole country.
Each step toward the West met a bigger Russian move, up to a full invasion.
How will things likely play out?
It is hard to see how this can end, since Putin (and his small closed circle) controls all the power, so protests within Russia can be quelled by force.
Sanctions and isolation will topple their economy, but will it push Putin to more desperate measures? Will Russia become another North Korea? Even if Russia manages to crush Ukraine and take over the country, will they be able to hold it? And at what cost? It will be a pyrrhic victory at the expense of their own country.
My guess is Russia doesn’t intend to hold Ukraine, and just wants to wreck the country and teach it a lesson, to scare them from joining the West (EU, NATO), and also to serve as a warning to other countries nearby who plan to do so.
This means once they have gained control of the main parts of the country, they will use it as leverage to negotiate a peace treaty which involves giving Russia some of Ukraine territories (and also officially recognising Crimea and Donbas as part of Russia), and include a clause that Ukraine will never join EU and NATO. Alternatively, Russia might plan to install a pro-Russian puppet government in Ukraine, and indirectly rule the Ukrainian people by force.
As long as the West does not intervene directly, Russia will most likely win the war by sheer numerical superiority, and Russia can get what it wants, but the price is heavy (Russian economy), and leaves generations of Ukrainians (and most of the world) hating Russia.
Youtube Videos
Good explainer video on the whole situation.
Historian Yuval Noah Harari (bestselling author of “Sapiens” and “Homo Deus”) provides important context on the Russian invasion, including Ukraine’s long history of resistance, the specter of nuclear war and his view of why, even if Putin wins all the military battles, he’s already lost the war.
John J. Mearsheimer, the R. Wendell Harrison Distinguished Service Professor in Political Science and Co-director of the Program on International Security Policy at the University of Chicago, assesses the causes of the present Ukraine crisis, the best way to end it, and its consequences for all of the main actors. A key assumption is that in order to come up with the optimum plan for ending the crisis, it is essential to know what caused the crisis. Regarding the all-important question of causes, the key issue is whether Russia or the West bears primary responsibility.
A vocal critic of the Russian leadership is Garry Kasparov, the chess grandmaster who repeatedly ranked world number one for 20 years before turning his attention to politics. He tells leaders to “help Ukraine fight against the monster you helped create.”
Ukraine and Russia’s conflict goes back to 2014, when Russia invaded and annexed Crimea and Russian-backed separatist forces took over parts of southeastern Ukraine’s Donbas region. But to understand the full context behind the invasion, it’s important to go even farther back, to the time when Europe’s current-day divisions began, and see how that shaped Europe’s power balance today.
As Western powers move to punish Russia for its aggression, China has a delicate balance to strike between a desire to help its ally and the need to insulate itself from further sanctions. China has been supplying electronics, machinery and electronic goods to Russia. But it is remains open how much aid China is able – or willing – to provide.
In this 2015 documentary, FRONTLINE traces Vladimir Putin’s ascent from unemployed spy to modern-day czar, and investigates the accusations of criminality and corruption that have surrounded his reign in Russia.
On September 27, 2018, Yale’s Program in Russian, East European and Eurasian Studies, and the Poynter Fellowship for Journalism hosted Vladimir Pozner, the acclaimed Russian-American journalist and broadcaster. Pozner spoke on the impact of US foreign policy towards Russia after the Soviet Union has been disbanded, and shared his opinions on a range of issues raised by the audience, from the alleged Russian interference in the 2016 US presidential elections, to Skripal poisoning, to the state of independent media in Russia and the US.
What is your average Ukrainian and Russian Infantryman thinking?
Russian Military ability is called into question. Can the Ukraine armed forces hold out long enoug to repel the Russian invasion?
What western military analysts miss and we track the Russian invasion minute by minute.
Day 13 of the Russian invasion and Kyiv hasn’t fallen yet. Russian forces begin to set in for a longer battle. What will happen?
On December 25, 1991, the Soviet Union collapsed. Along with it came hope for the end of the Cold War, for independence and freedom for the former Soviet republics. But for many it also brought poverty and war. What remains of the dreams of that time? The documentary includes contemporary witnesses and politicians of the decisive years and shows what has become of the legacy of a world power.
Putin is taking over land, but losing the war.
An epic blunder by Belarusian leader Alexander Lukashenko has revealed Putin’s military strategy in eastern Europe. Lukashenko’s map appeared to show a planned Russian offensive on Moldova. Could this ex-Soviet state be Putin’s next target?
The Failed Logistics of Russia’s Invasion of Ukraine
The inside story of Russian President Vladimir Putin’s conflict with the United States.
This film asks young people from St. Petersburg to Eastern Siberia how they feel about life in today’s more powerful yet also more unstable country. Some are fanatical Putin supporters, while others are opposition activists. We look behind the barbed wire around a closed Siberian city, visit a Muslim village in Tatarstan, and talk to young Muscovites. And we also see how the Russian education system instils children with the regime’s propaganda from an early age.
Since March 2014, 30 Crimean Muslim Tatars have been imprisoned on charges of “extremism”. Forty-four activists have been abducted, 19 of whom are still missing, while six have been found dead. The Federal Security Service of the Russian Federation, known as the FSB, is allegedly the main culprit behind these incidents.
With Ukraine once again in the spotlight, revisit “The Battle for Ukraine,” in which filmmaker James Jones documented both sides of the fight in 2014 between Ukraine’s ultra-nationalist group, Right Sector, and a militant, pro-Russia group called Stronghold. Drawing on personal and dramatic footage, Jones (“Secret State of North Korea”) documented deep-seated hatreds between right-wing Ukrainians with historic ties to the Nazis, and violent pro-Russian separatists vying for control of the country.
The latest peace talks on the Ukraine war end without a breakthrough. Can anyone stop Putin?
While the world is watching the ongoing Ukraine-Russia conflict unfold, many countries condemn Russia’s aggression against Ukraine. But what about China, which is supposed to be one of Russia’s biggest allies? We hit the streets of Shanghai to get Chinese citizen’s reaction to the ongoing Ukraine-Russia conflict and to hear what they think about Russia and Putin in general.
As an uneasy ceasefire continues to hold in Eastern Ukraine, VICE News returns to Donetsk with an exclusive film that follows some of the characters involved in setting up the self-proclaimed state of the Donetsk People’s Republic (DPR).
As the armed conflict between the Ukrainian army and Russian-backed separatists enters its third year, VICE travels to the frontline to take a closer look at what international assistance really looks like for those caught in the line of fire.
VICE News travels to Russia to investigate the mysterious deaths of dozens — possibly hundreds — of active-duty Russian servicemen who are believed to have been killed in Ukraine. Accounts gathered from soldiers’ families, human rights workers, and government officials cast doubt on the Kremlin narrative, revealing the unacknowledged sacrifices borne by Russia’s ghost army.
Binkov analyzes various possibilities if Russia does end up sending its military force to attack Ukraine. How would the military conflict go? Where might Russia stop? What would the economic and political fallout be both for Russia and the rest of the world?
Topic of this video is Ukraine’s military. What state is it in today? How many troops and weapon systems does it have? What are its strengths and weaknesses? We try to be as up to date as possible, which is quite hard, given the ever ongoing changes due to the war.
Twitter Threads & Tik Tok
Let’s discuss Putin speech. He declared Ukrainians to be “Neonazis” and promised to “denazify” them. Indeed the “Nazi” character of Ukrainian statehood and identity has long been a central thesis of Russian propaganda. Let’s discuss why and how it reflects ideology of Putinism? pic.twitter.com/UDGtRTj89r
Four days since the invasion began. In the past 24 hours, we have seen limited Russian progress according to multiple sources. My 4th set of observations, noting the ongoing lack of clarity & abundance of ambiguity. 1/24 pic.twitter.com/0DxKXIHRtr
— Major General (just retired!) Mick Ryan (@WarintheFuture) February 27, 2022
THREAD I know it sounds contra-intuitive, but it feels that Russia and its army are about to collapse. RU obviously has no reserves left: the tanks they send to the front are very old, without active armor, look like training machines. They do not have trucks, using civilian ones
In this week’s market wrap, we will go through the forex market, stock market, and cryptocurrencies, to review major events and trading signals, and look for upcoming trading opportunities.
The forex market was pretty uneventful, but we still got a few trading signals:
AUD/CHF: breakout from inverse head-and-shoulders pattern
EUR/GBP: breaking new lows
XAG/USD (Silver): Potential short near top of range
AUDJPY: Uptrend resume after BO + PB
CADJPY: Breakout + PB
EURNZD: Break new lows
AUDUSD: Uptrend resumes after BO + PB
CHFJPY: Break new highs!
GBPUSD: Possible Type 2 swing setup (short)
Stock Market Highlights
There was a bit of a disjoint in the stock market, with a few huge stocks pushing the market up, while the bulk of the market is down.
This divergence in market breadth is not a good sign, but as long as the overall main indices are still bullish, I will continue to hold my positions in them, while taking strategic short/medium-term swing trades in individual stocks.
Facebook has decide to change their name to Meta to reflect their new direction of building towards the Metaverse, so FAANG is now MANGA. ?
This gave a good boost to Metaverse-related tokens in the crypto market, unfortunately Facebook stock still seems pretty languid.
Here were the trade signals for last week:
S&P 500, Dow Jones, NASDAQ: break new highs!
Facebook: New swing low
China stocks ETFs: Prices falling from top of range?
TWTR: Breaking out of consolidation?
GOOG: New ATHs!
MRNA: Potential double top breakout
V: Break new lows
Z: Potential range bullish breakout
SBUX: Break H&S neckline (bearish)
F: PB buying opportunity?
TSLA: New ATHs!
UBER: Break prior swing low
NET: New ATHs! (up almost 50% since first buy call)
Crypto Market Highlights
Earlier in the week, we saw multiple breakouts and sharp runs of Alt coins and DeFi tokens, which corrected after running into resistance, then later in the week we saw the same pattern for Metaverse and NFT-related gaming tokens.
If you ride the wave well and rotate accordingly, this actually provides insane returns of easily 50-200% in just one week. Not sure how long it can last, but enjoy it while it lasts.
One of the highlights earlier in the week was Shiba Inu Coin (SHIB), which lay dormant for a long time before breaking out and shooting vertically upwards. ?
Recently, there has been a lot of volatility in the Crypto market, with many bullish and bearish factors moving the market, which resulted in a big crash.
In this post, I’m going to do an overview of the crypto and forex market, review some of our recent trades, and discuss the current trading opportunities.
If you want to get all the analysis and charts mentioned in this post ahead of time, don’t forget to join our free telegram channel! https://t.me/synapsetrading
Covid updates
Before we go into the markets, let’s take a quick look at the Covid situation, with a focus on vaccination.
As you can see from this chart, the developed countries have surged ahead with vaccinations, with 50-60% of their population getting at least one dose.
For many of these places, life has almost gone back to normal, and the economic recovery has started.
Unfortunately, this recovery is going to be another K-shape recovery, because if you look at the overall numbers, only 10-15% of the global population has had at least one dose.
My guess is that by Q3 or Q4 this year, travel will resume in some developed countries.
Bitcoin: Shorting the Big Crash!
In early May this year, I started calling for a short on Bitcoin, after seeing the rising wedge pattern which evolved into a head and shoulders pattern.
Bitcoin (BTC/USD) is starting to form a potential reversal pattern. We need to watch out in case this price movement develops. Trade according to the trend! ??
Following up from our Bitcoin (BTC/USD) analysis just a few days ago, we accurately predicted the sharp drop of Bitcoin before it happened!
Congrats to those who followed and shorted! ???
Bitcoin: Buying Opportunity Now?
More recently, I noticed that Bitcoin has bottomed out for the medium-term, so I issued a buy call, which is still valid now.
Following up on our series of uncanny accurate predictions on Bitcoin (BTC/USD), it has now formed a mini double bottom (tweezer bottom), and we could well see a medium-term swing upwards, after the huge sell-down that went into oversold territory.
Though the major trend might still be bearish, this looks like a good low-risk counter-trend buying opportunity to capture a swing up.
Following up on Bitcoin (BTC/USD), this is the 3rd test of support (and it held), which is a sign of bullishness.
Looks like a good time to start accumulating some. ??
Ethereum: Profits from the Crash
Looks like Ethereum (ETH/USD) is in for some correction as well, with the first major support at 3000. Will reevaluate when prices get there.
Following up on Ethereum (ETH/USD), our prediction was also spot-on, and the crash exceeded our expectations and went all the way to TP3 in just one day!
Congrats to those who followed and shorted! ???
Recent Forex Trades: AUD/CHF & EUR/JPY
Looking at the chart of AUD/CHF, it has tried 3 times to break the resistance to new highs, but failed 3 times.
This suggests that there may be more downside, especially if it breaks the bullish trendline.
Following up from AUD/CHF, it has broken to new lows as predicted, and is now trending downwards.
Congrats to those who followed! ???
EUR/JPY remains on a strong uptrend, clearing the recent resistance, and formed a bull flag after pulling back to the 10&20-EMAs.
Following up on EUR/JPY, it has gone up by +276 pips since our last analysis.
Congrats to those who followed! ???
I have come to the end of this market analysis.
Now that I have shared my views on the various markets, do you think it is a good time to start buying cryptocurrencies?
https://synapsetrading.com/wp-content/uploads/2026/10/profits-crypto-crash-card.webp6301200Spencer Lihttps://synapsetrading.com/wp-content/uploads/2026/10/synapse-logo-horizontal-light.pngSpencer Li2021-06-11 19:05:032026-08-07 16:15:13How Much Profits Did You Make from the Crypto Crash?
