EURUSD Market Guide and Volatility AnalysisEURUSD Market Guide and Volatility Analysis has now been released (see download link below).

EURUSD Market Guide and Volatility Analysis Summary

The volume analysis portion of the report, shows that volume decreased significantly during 2012, 2013, and 2014 (with 2014 being the lowest liquidity).  However, 2015 shows a marked increase in liquidity for the EURUSD.  Of course, the highest liquidity is during the London and US sessions.

Contrary to the volume studies, the most volatile year for pip movement was 2008.  Additionally, although other currencies indicate the average daily pip movement is significantly increasing, the EURUSD is struggling to increase in volatility.[sociallocker]

In addition to the average daily movement in pips, a comparison of Average Movement by Quarters is also beneficial.  The chart below shows the average range of movement for each quarter in pips.  The quarter with the most movement is from October to December.  The quarter with the least movement is July to September (which coincides with vacation time in Europe).

Overall the most volatile month is January.  From the chart below, it is evident that the most movement is during the London and US sessions with Asia having the least volatility.  The table shows that there is a slight decrease in volatility during the July to September months.  During these periods traders may want to change their trading plan to reflect a lack of volatility, which could affect their trading styles.

The forex trading session times run from 6:00 pm to 5:00 pm the following day.  The individual opening sessions for the major Stock Exchanges around the world are (Shanghai has been included because within the last year it has greatly influenced the markets):

  • New Zealand Stock Market – 10 am NZST
  • Australian Securities Exchange – 10 am AEST
  • Tokyo Stock Exchange – 9:00 am JST
  • Shanghai Stock Exchange – 9:30 am CST
  • Frankfurt Stock Exchange – 8:00 am CET
  • Swiss Exchange – 9:00 am CET
  • London Stock Exchange – 8:00 am GMT
  • New York Stock Exchange – 9:30 am EST

All times provided above are in the country’s local time.

Download the EURUSD Market Guide and Volatility Analysis by clicking on the white paper link below.

White Paper