Asian trading session, Tokyo takes the largest market share, followed by
Hong Kong and Singapore. Despite the flagging influence of the Japanese
central bank on the FX market, Tokyo remains one of the most important
dealing centers in Asia. It is the first major Asian market to open, and
many large participants often use the trade momentum there as the
benchmark to gauge market dynamics as well as to devise their trading
strategies. Trading in Tokyo can be thin from time to time; but large investment banks and hedge funds are known to try to use the Asian session
to run important stop and option barrier levels. Figure 5.1 provides a ranking
of the different currency pairs and their ranges during the Asian trading
session.
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