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[Oluti]

The euro (EUR) ranks second behind the U.S. dollar (USD) in terms of global liquidity, trailed by the Japanese yen (JPY) and British pound (GBP). Forex traders speculate on EUR strength and weakness through currency pairs that establish comparative value in real-time. Although brokers offer dozens of related crosses, most clients focus their attention on the six most popular pairs:

U.S. dollar (USD) - EUR/USD
Swiss franc (CHF) - EUR/CHF
Japanese yen (JPY) - EUR//JPY
British pound (GBP) - EUR/GBP
Australian dollar (AUD) - EUR/AUD
Canadian dollar (CAD) - EUR/CAD

EUR trades continuously from Sunday evening to Friday afternoon in the United States, offering significant opportunities for profit. However, volume and volatility can fluctuate greatly in each 24-hour cycle, with bid/ask spreads in the less popular pairs widening during quiet periods and narrowing during active periods. While the ability to open and close positions at any time marks a key benefit of forex, the majority of trading strategies unfold during active periods.

Many forex traders focus their full attention on the EUR/USD cross, the most popular and liquid currency market in the world. The cross maintains a tight spread throughout the 24-hour cycle, while multiple intraday catalysts ensure that price actions will set up tradable trends in both directions and along all time frames. Long- and short-term swings also work extremely well with classic range-bound strategies, including swing trading and trading channels.

Euro Price Catalysts
The best time to trade the euro coincides with the release of economic data, as well as the open hours at equity, options and futures exchanges. Planning ahead for these data releases requires two-sided research because local (eurozone) catalysts can move popular pairs with the same intensity as catalysts in each of the cross venues. Moreover, U.S. economic data can have the greatest impact on all currencies, due to the overriding importance of the EUR/USD pair.

In addition, EUR crosses are vulnerable to economic and political macro events that trigger highly correlated price actions across equities, currencies and bond markets around the world. China’s devaluation of the yuan in August 2015 offers a perfect illustration. Even natural disasters have the power to generate this type of coordinated response, as evidenced by the 2011 Japanese tsunami.

Economic Releases
Eurozone monthly economic data is generally released at 2 a.m. Eastern Time (ET) in the United States. The time segment from 30 to 60 minutes prior to these releases and one to three hours afterwards highlights an enormously popular period to trade EUR pairs because the news will impact at least three of the five most popular crosses. It also overlaps the run-up into the U.S. trading day, drawing in significant volume from both sides of the Atlantic.

U.S. economic releases tend to be released between 8:30 a.m. and 10 a.m. ET and generate extraordinary EUR trading volume as well, with high odds for strongly trending price movement in the most popular pairs. Japanese data releases get less attention because they tend to come out at 4:30 p.m. and 10 p.m. ET, when the eurozone is in the middle of their sleep cycle. Even so, trading volume with the EUR/JPY and EUR/USD pairs can spike sharply around these time zones.

Euro and Equity Exchange Hours
The schedules for many EUR traders roughly follow exchange hours, centering their activity when the Frankfurt and New York equity markets and Chicago futures and options markets are open for business. This localization generates an increase in trading volume around midnight on the U.S. East Coast, continuing through the night and into the American lunch hour, when forex trading activity can drop sharply.

However, central bank agendas shift this activity cycle, with forex traders around the world staying at their desks when the Federal Reserve (FOMC) is scheduled to release a 2 p.m. ET interest rate decision or the minutes of the prior meeting. The Bank of England (BOE) issues its rate decisions at 7 a.m. ET, while the European Central Bank (ECB) follows at 7:45 a.m. ET, with both releases taking place in the center of high volume EUR activity.

The Bottom Line
Six popular currency pairs offer euro traders a wide variety of short- and long-term opportunities. The best times to trade these instruments coincide with key economic releases at 1:30 a.m., 2 a.m., 8:30 a.m. and 10 a.m. U.S. Eastern Time, as well as between midnight and noon, when European and American exchanges keep all cross markets active and liquid

 

[lioralace]

Alright, let’s skip the finance textbook tone and get real for a second.

The euro is basically the world’s second favorite currency—second only to the all-mighty U.S. dollar. Seriously, if money were a popularity contest, the euro would be the cool kid sitting right behind the class president. On the forex scene, it’s everywhere. Traders are always trying to guess if it’s about to flex or flounder, and most folks stick to the main pairs: EUR/USD, EUR/CHF, EUR/JPY, EUR/GBP, EUR/AUD, and EUR/CAD. Anything outside those is kind of the Wild West—fun for adventurers, but most people like to keep it predictable with those top six. Why? They’re liquid, have tons of action, and don’t usually screw you over with awful spreads.

Now, what’s sweet about trading euro pairs? The market never really sleeps. Well, okay, it naps for a bit over the weekend, but from Sunday night till Friday afternoon (U.S. time) it’s go time. Doesn’t matter if you’re a night owl in Australia or half-awake in Europe, there’s a slice of action for you. But it’s not all sunshine—sometimes the market’s flat and spreads balloon up, especially if you’re poking around with the less popular pairs. Smart traders? They wait for the good stuff—when everybody’s awake and firing off trades so the prices actually move and spreads are tight.

Really, if you’re going to talk euro trading, you can’t ignore EUR/USD. It’s the MVP—most traded, insane liquidity, tiny spreads. Think of it as the LeBron James of currency pairs. Doesn’t matter if you’re a rookie or a pro, you’ll find something for you, whether you love fast momentum trades or just want to play the old buy-low-sell-high game in between support and resistance channels.

But hey, all that technical nonsense won’t help much if you have zero clue about what actually moves the euro around. Gotta watch for economic news—stuff dropping out of Europe and the U.S. really shakes things up. European numbers usually arrive at what feels like a ridiculous hour—around 2 a.m. Eastern—perfect if you live on caffeine and questionable life choices. U.S. news, on the other hand, hits in the sane part of the morning and almost always jolts the EUR/USD.

Don’t sleep on Japanese data either, especially if you like trading EUR/JPY. Sure, those numbers come out when most of Europe is snoozing, but trust me, they can light a fire under the price when you least expect it.

Also, euro trading volume is totally handcuffed to when the big stock markets open. Frankfurt wakes up? Boom, activity spikes. New York cracks its knuckles? More fireworks. There’s usually a giant burst from midnight to late morning U.S. time, and then stuff slows down for a while—lunch break, anyone? But all bets are off when central banks pop out an announcement. The Fed drops news in the afternoon, or the ECB and Bank of England open their mouths in the morning, and suddenly the market’s on Red Bull again.

If you want the too-long-didn’t-read version: trading the euro boils down to those main pairs and timing. Best action is basically midnight to noon Eastern U.S. time, especially when big economic news is on the calendar. Know the triggers, watch the rhythms, and you might actually make some money. Or, you know, at least not get wrecked your first week in.

 

[kerryjoy]

I've recently started trading forex, and I must say that trading the euro is crazy. Since EUR/USD is extremely liquid and has tight spreads, even during off-peak hours, I mostly stick with it. The real action seems to start around major news releases, such as the release of data from the US or the Eurozone. The market starts to move at that point. I make an effort to trade during those hours, particularly between midnight and noon ET, when trading is active in both Europe and the US. Staying ahead of events like ECB meetings or unexpected news from China makes a big difference; it's not just about keeping an eye on the charts. In this game, timing is crucial.