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London and New York are both open during this three-hour window. That means a lot of volume coming in from two major markets, so spreads are typically tightest during this time. Volatility doesn't just change throughout the day, it also fluctuates on longer timelines. To get a sense of the daily volatility, you can use indicators like the average true range ATR that gauge volatility based on recent periods.
When the Federal Reserve raises interest rates , it means that investors can get higher interest payments on U. Investors and traders will view the U. In other words, the euro will lose value compared to the dollar. Trading Forex Trading. By Cory Mitchell.
Cory Mitchell, Chartered Market Technician, is a day trading expert with over 10 years of experience writing on investing, trading, and day trading for publications including Investopedia, Forbes, and others. Learn about our editorial policies. Reviewed by JeFreda R. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. Learn about our Financial Review Board.
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