Best Forex Pairs to trade during the New York Session

Think about this, EUR/USD moves an average of 70 pips during the New York session, almost double its Asian session volatility. If you’re trading forex, ignoring the New York session means missing out on the most liquid, news-driven window of the day.

But here’s the catch, not all currency pairs perform equally. Some, like USD/JPY, surge in response to U.S. economic data. Others, like AUD/USD, fade as Asian markets close. The difference between a winning trade and a dead one? Picking the right pair at the right time.

Let’s unpack the journey, region by region, rule by rule.

Why Trade Forex During the New York Session?

The New York session (8:00 AM–5:00 PM EST) is highly liquid with narrow spreads and is an excellent time to trade. When it coincides with London (8 AM–12 PM EST), you get the bulk of the volatility, especially in USD pairs. 

Key U.S. economic releases, such as NFP, CPI, and FOMC announcements, are typically released during this time, often triggering significant market swings that ripple through the crypto market.

Best Forex Pairs to Trade in the New York Session

The New York session works well for trading major pairs that offer solid liquidity, volatility, and clear reactions to economic data. 

Here are the top choices:

EUR/USD: The Most Liquid Pair

Good price movements and narrow spreads make this the best pair to trade during New York hours, especially 8 AM to 11 AM EST (overlapping London and New York).

This overlap creates momentum because European and U.S. traders are both online at the same time, and this gives a good trend and breakout signal. With plenty of news and huge institutional trades, EUR/USD is the number one choice for day traders and scalpers at this time.

GBP/USD: High Volatility Pair

Known for big moves caused by UK and US news. Good for traders who want to catch momentum.

This pair often reacts strongly to economic releases like UK GDP or Bank of England statements, especially when they coincide with U.S. data. The sharp price swings offer excellent opportunities for breakout and news-based strategies, but require tight risk management due to their unpredictability.

USD/JPY: Safe-Haven with Trends

Follows U.S. bond yields and market sentiment closely. Popular with breakout traders during major news events.

During times of global uncertainty, this pair tends to attract safe-haven flows, often leading to strong directional trends. It's especially reactive during speeches from the Federal Reserve or Bank of Japan, making it a favorite for traders who follow macro fundamentals and sentiment shifts.

USD/CAD: Oil Correlation Play

Moves with crude oil prices and economic data from both the U.S. and Canada. Works best during U.S. energy reports.

Its sensitivity to oil means traders often watch inventory data like the EIA report, which is released midweek. This pair also reacts well to Canadian employment numbers and U.S. inflation data, offering clear setups during active hours in the New York session.

AUD/USD & NZD/USD: Risk-Sensitive Pairs

Response to global risk sentiment and commodity prices. Volatility often carries over into the NY session from Asia-Pacific trading.

These pairs are also sensitive to U.S. economic releases and equity market performance, making them useful for traders looking to play risk-on or risk-off themes. When Wall Street sentiment shifts sharply, AUD and NZD can move in tandem with stocks, offering short-term opportunities.

Gold (XAU/USD): A Non-Forex Alternative

Very active during NY hours. Often moves opposite to the U.S. dollar and responds to inflation or Fed-related news.

Its volatility makes it a favorite among intraday traders, especially during key economic releases like CPI, NFP, and FOMC announcements. Gold also acts as a safe haven in times of market stress, offering trading opportunities when risk sentiment shifts abruptly in the New York session.

Worst Forex Pairs to Trade in the New York Session

Not all pairs thrive during the New York session. Exotic pairs, like USD/TRY or USD/ZAR, often suffer from wider spreads and thin liquidity, making them costlier and riskier to trade. Similarly, many Asian pairs, such as AUD/JPY or SGD/USD, tend to quiet down outside their regional hours. One exception is USD/JPY, which remains active thanks to U.S. market influence.

Best Trading Strategies for the New York Session

The New York session is when the forex market gets most active, fast-moving, packed with economic data, and full of momentum. It overlaps with London for several hours, which creates strong liquidity and sharp price changes. Traders who do well in high-volatility situations can find good opportunities here, but you need a solid strategy and quick execution. Here are the top strategies that work well during New York trading hours.

Breakout Trading: Volatility spikes at the session open, especially during the London, New York overlap. Perfect for catching early momentum. In this convergence, the meeting of liquidity from the two most significant financial hubs, London and New York, tends to produce strong breakouts of prior-formed ranges in the Asian and early London sessions. These have a tendency to happen as a result of big institutional trades, economic reports, or news hitting the market. 

Traders are able to accomplish more by recognizing areas of consolidation, false breakouts, and volume spikes on lower timeframes. Utilizing technical pointers in conjunction with market sentiment helps to verify real breakouts and avoid entrapment. 

News Trading: U.S. releases are at 8:30 AM EST (for example, NFP and CPI), and the market will sometimes react immediately to them. Traders position around or react to these releases.

These news releases of economic data are the cause of instantaneous and furious price action, especially in USD crosses like EUR/USD, USD/JPY, and GBP/USD.

To be successful in trading these news releases, you need to contrast what the market is expecting with what the actual figure is, the greater the discrepancy between them, the more explosive the reaction of the market can be.

Scalping: Scalping: With good liquidity and narrow spreads on such currencies as EUR/USD, you can scalp for small gains rapidly. The low liquidity of the New York session, and especially when it overlaps with London's, is not ideal for scalpers as they need rapid execution and minimal slippage. 

Traders often watch which charts, one-minute to five-minute charts, small trends, or short-term support and resistance points, to make rapid in-and-out trades. You need discipline and regularity, scalping requires a strict trading plan, tight stop-losses, and constant monitoring of price action. Financial news also introduces small spikes of volatility that, if timed well, give you some good scalping options.

Best Time to Trade the New York Session

Timing is everything. The first two hours (8 AM – 10 AM EST) offer the most volatility, especially during the London–New York overlap, ideal for catching strong moves. The last hour (3 PM – 4 PM EST) often sees reversals as London traders close positions, creating sharp end-of-day swings. 

These patterns are part of the broader global session dynamics, as outlined by BabyPips in their Forex trading sessions guide.

Final Thoughts

When it comes to trading weekdays, not all hours or currency pairs are equal. The New York session offers you decent pips on major pairs like EUR/USD, GBP/USD, and USD/JPY, especially during high volatility and liquidity. Getting your trades in when you open the session or upon the release of big economic news can be a huge difference maker.