Best Forex Pairs to Trade During the London Session

The best pairs to trade during the London session include EUR/USD, GBP/USD, and EUR/GBP as European and British markets have their maximum involvement during this time. 

GBP/JPY, EUR/JPY, USD/CHF, and USD/JPY can also be active depending on whether you trade during the London opening or the overlap of the London and New York sessions.

Pairs differ in terms of their liquidity, spreads, and price action. This guide reviews the most active London session forex pairs, their features, and what a trader should consider before choosing one.

7 Best Forex Pairs for the London Session at a Glance

Here is a brief look at how the main London session currency pairs behave during European hours and when it matters most.

Below is each currency pair and how it will react when European markets open. It describes the unique characteristics of the pair in the London session.

EUR/USD

EUR/USD is the high liquidity currency pair in the London session. The euro gains momentum when the European market opens and then receives another boost when the New York market opens. This makes the London-New York overlap period significant for the pair.

Eurozone and ECB news are more significant early in the session, while US data becomes more relevant late in the session, which is why the overlap is the stretch many traders watch most closely.

GBP/USD

Sterling becomes more significant when the London market opens, and there can be good participation until the London morning session. Participation in the pair increases again when New York opens.

The UK economic data and Bank of England announcements are very important in the London session and GBP/USD moves more than EUR/USD in this session.

EUR/GBP

EUR/GBP currencies are both influenced by European sessions, making it an interesting currency pair for London apart from USD-denominated pairs. 

Interest rates, inflation figures, and employment numbers from both economies can affect the movement of this pair. 

The London morning is typically a significant time frame for this currency pair as European traders start trading. Traders can apply forex fundamental analysis to see how these events might impact EUR/GBP.

USD/CHF

CHF-related European activity stays relevant during London, while USD participation grows as the New York session approaches. It means that the second half of the London session matters.

The development of Swiss and US economies may have an impact on this currency pair; the safe-haven factor is also less relevant than timing in the London session.

EUR/JPY

Since the yen was already traded during the Asian session before the opening of Europe, EUR/JPY reflects the transition between two sessions.

New euro flows occur as the European influence on the market grows. It could affect liquidity and movement. The European factors will become increasingly important since London begins to come in.

GBP/JPY

The sharp increase in sterling activity occurs as soon as London comes in, while the JPY pricing continues being carried over from Asia. It could cause significant movement at the beginning of the London session.

UK economic data and Bank of England events could contribute to volatility in the London session, even though GBP/JPY is not always the most volatile currency pair.

USD/JPY

The yen continues being active after the Asian session ends, and the liquidity of USD/JPY stays relatively high thanks to London.

The factors related to the US dollar become important when New York starts its working day. It means that the second half of the London session becomes more important than the opening of London.

What Time Is the London Forex Session?

The London forex market session usually works from about 8:00 AM to 5:00 PM London time.

For U.S. traders, it works out to be about 3:00 AM to 12:00 PM Eastern Time during the respective Daylight Saving hours in both the UK and US.

The connection can change temporarily since the UK and US set their clocks differently on different days.

As the daylight-saving hours change on different days in different countries, it is better to clarify the session timing rather than to assume anything.

Why Are These Pairs Active During the London Session?

A lot of foreign exchange transactions are conducted in London.

According to the statistics provided by the Bank for International Settlements, the average turnover in global foreign exchange transactions was about $9.6 trillion per day in April 2025. The UK was still leading the list of the biggest markets for currency exchange trades, comprising almost 38% of total global FX turnover.

This dominance serves as the reason why pairs such as GBP, EUR, and USD crosses can have decent liquidity in the London trading session.

Trading entities from the UK and Europe are present, and economic news from the UK and Eurozone may influence the market.

At the end of the London trading session, the New York session comes in. This way, the presence of the US dollar affects the liquidity conditions of EUR/USD, GBP/USD, USD/JPY, and USD/CHF.

London Open vs London–New York Overlap

The relevant pair will depend on which part of the London session you are trading.

London Open

During the London open, the financial centers of Europe will start responding to the events that have occurred in Asia.

Pairs that involve the GBP and EUR will see increased activity, and economic data from the UK and the Eurozone will lead to new movements. Thus, GBP/USD, EUR/GBP, EUR/USD, GBP/JPY, and EUR/JPY will be relevant during the London open in the early hours.

Pairs involving the sterling might get more focus in case of economic news from the UK or statements by the BoE.

London–New York Overlap

During the end of the session, London and New York overlap. This normally results in higher activity in the major USD crosses. The foreign exchange market is normally more active when the major sessions overlap.

EUR/USD and GBP/USD will become more important at this point of time because both the European and the US traders will participate in the trade.

USD/JPY and USD/CHF may become more volatile, while US inflation, employment, growth, and central bank news can cause even more volatility.

Most Volatile Forex Pairs During the London Session

Among the most volatile forex pairs London session, GBP/JPY, GBP/USD, and EUR/JPY should be noted as their component currencies have different flows of orders as Europe becomes active.

GBP/JPY is likely to be more volatile at the London opening as more sterling activity is generated while yen activity carries on from the Asian session.

GBP/USD can also move heavily when economic data from the UK is released followed by another source of activity in the New York session opening.

EUR/JPY could become highly active as a new wave of European trades come up in addition to those from the Asian trading day.

Large moves in the market don’t always translate into making that pair great. Higher moves in price action might also lead to negative and fast moves coupled with higher execution risks. 

Traders who are willing to accept more liquidity than large price moves might like to trade currency pairs such as EUR/USD.

Which London Session Pair Fits Different Trading Preferences?

There are many London session pairs that might suit different preferences. It is not only important to choose the most popular ones but also to think about how their activity will correspond to your preference concerning the London session.

All of those are not the ultimate recommendations as the liquidity, spreads, news and volatility differ every day.

What Moves Forex Pairs During the London Session?

The following events may impact the dynamics of London session currency pairs.

Bank of England decisions

Interest rate policy decisions and statements can impact GBP/USD, EUR/GBP, and GBP/JPY pairs.

European Central Bank decisions 

The ECB interest rate decisions and changes in its expectations can affect EUR/USD, EUR/GBP, and EUR/JPY pairs.

UK and Eurozone economic data 

Inflation, employment, GDP, PMI, and other important data can impact GBP and EUR pairs while the European session is open.

US economic data during the overlap 

Inflation statistics, employment numbers, GDP reports, and FED interest rate policy decisions can impact EUR/USD, GBP/USD, USD/JPY, and USD/CHF pairs.

Risk sentiment 

Any surprising movements in market sentiment across the world can have an impact on JPY and CHF pairs and cause their normal London-session behavior to change.

How to Choose a Forex Pair During the London Session

Picking among the best forex pairs for London session depends on when you plan to trade.

Consider the part of the session 

For example, when you trade in the early part of the London session, then GBP and EUR pairs could be more pertinent. If you trade later, then USD pairs can become more active as the NY session approaches.

Check scheduled economic events 

Even the most liquid pairs can react differently if there is a central bank announcement, inflation numbers or employment report is due.

Compare current spreads and liquidity 

While past session behavior is a good reference, the current trading environment varies each day.

Consider your volatility preference 

EUR/USD and GBP/JPY pairs can have very different behaviors in the London session at the same time of day. Volatility does not necessarily give you an edge.

Monitor current conditions 

Past performance is no guarantee of future behavior in the London session.

Conclusion

Selection of the best forex pairs to trade in the London session depends on which part of the session you are trading and your preference between liquidity, European bias, or price action.

EUR/USD is very crucial in terms of liquidity and in trading the London-New York sessions, but GBP/USD may offer better sterling price action. EUR/GBP offers you direct UK versus Eurozone exposure, while GBP/JPY and EUR/JPY can get highly volatile during the London session’s opening.

Do not select a forex pair as the best for every case, but judge it on its liquidity, volatility, economic news, and time of the London session you wish to trade.

Risk warning: Increased liquidity or volatility does not guarantee profit opportunities. Trading in forex, especially with leverage, can cause serious losses.

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