London-New York - This crossing is quite another tune, because the overlapping lasts approximately 5 hours, i.e. half a day. In fact activity starts to decrease around the NY lunch time. With more than 50% overall daily transactions you see that market is strongly activated. The big whales of FOREX start to toss and turn their billions, wires are burning off and all this stuff comes to life. This is the most active and busy time of a trading day, because it involves two major financial centers in the world. - Important news and macro data from US and Canada flow into markets in the beginning of New York’s trading day. Also market could be shaken by late news from Europe. - If some important data has shaken the market during the London session, or if a strong trend has been established, we can see that it could continue during the New York session. It happens, because US traders investigate what has happened earlier in the day, and they take this data into account and also often join to current tendencies and trends. - When the London session comes to an end, European players could start to close their positions. US traders, in turn, remain in the game. This combination can lead to choppy price action closer to New York’s lunch time. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.