Business day exchange dealers of Western commercial banks generally begins at 7:30 am local time. At 8:00 AM dealers are already actively doing deals. The morning half an hour usually devoted to a brief analysis of developments in world currency markets at the beginning of work. Dealers and senior dealers use economic and technical analysis of the market, read analytical articles in the press, exchange points of view, as well as fresh rumors with each other and with dealers from other commercial banks.
On the basis of various data gradually emerging picture of possible behavior of the exchange rate for the day with different versions of the probability of certain events.
By 8 o'clock in the morning market, consisting of individual dealers, develops tactics and behavior as a whole begins to be included in the operation of the world, "the foreign exchange market, giving a new impetus to the movement of energetic exchange rate.
Various territorial markets can provide the following characteristics of the average typical activity during the day.
Far East
Here, the most active deals in the market forex transactions dollar Japanese yen, the dollar mark, marks the yen and the dollar to Australian dollar, but in general, fluctuations in the exchange rate rather low (20-50 pips). In Moscow at this time of night and morning (before noon in Moscow, you can work with Tokyo to lunch - with Singapore).
Europe
At 10:00 Moscow time the market opens in the European financial centers of the mainland - Zurich, Frankfurt-am-Main, Paris, Luxembourg. However, the really powerful movement of the exchange value of the dollar against other major currencies (in particular, to the German mark) begins after 11-00 Moscow time, when the London market opens. It lasts usually for two to three hours, after which the dealers of the European banks go to lunch - lunch, and market activity is slightly reduced. Fluctuations in exchange rates may be within 10-15 pips (dealers call it dead or dull market - dead or boring market), but at times can reach 70 - 100 pips (ie, large pieces), which is characterized as lively and busy market (bouant or busy market).
North America
The situation comes alive again with the opening of the market in New York at 16:00 Moscow time, when the start working dealers of American banks, and returned with lunch European dealers. Force of European and American banks are about equal, so the fluctuations of the rate does not go beyond the usual European fluctuations. Nevertheless, foreign exchange dealers look forward to the opening of the New York market to get fresh data on the possible movement of the course (especially if the European market has been sluggish). However, after the close of the European market (about 19-20 hours Moscow time), aggressive American banks, left alone to "thin" market, can lead to a drastic change in dollar exchange rate to the deutsche mark, yen, pound sterling, and so on this time accounted the most dramatic movements of exchange rates - up to 400 - 500 pips (USD / DEM), which corresponds to a few percentage points of changes in value.
The Moscow market
Operations in the interbank foreign exchange market characterized by a certain specificity of Russia, in contrast to the world market of hard currencies. It stems from the fact that during the day at the market exchange transactions current dollar / ruble operations are conducted with different value dates. Start the day Moscow dealers operating in the domestic foreign exchange market is calm enough - taking stock of the past day, conducted strategic planning of possible developments in the market today, based on fundamental analysis, technical and other factors (eg, gossip).
At 11 o'clock in the morning session starts the Moscow Interbank Currency Exchange (MICEX), the results of which it becomes clear the balance of demand and supply of currency, the policy of the Central Bank to regulate the degree of exchange rate, and also determines the dollar to the ruble to be adopted as an official.
At the time of the announcement start fixing the active process of inter-bank currency trading for "today» (today). Beginning immediately after fixing the MICEX, the market gradually reduce speed and almost dies down to dinner (14-00 Moscow time), although sporadic transactions can be carried out until the evening. The course of today (or tod) is formed in the first minutes after the fixing of the exchange on the basis of information about new MICEX rate, based on yesterday's exchange rate calculations tomorrow (which to this day has become today), as well as the positions of banks.
After half an hour after the start of the market today there is conversion calculations market transactions calculations of "tomorrow» (tomorrow), whose rate is calculated as one-day course on the course today ayutrayt through interest rates such as "overnight" on the ruble money market. Operations calculations of "Tomorrow" continues into the evening (usually up to 18-00, although the case and the later transaction), reducing the activity of several during the lunch break (from 13 to 15 hours).
The specifics of the Russian market is that both courses are the current dollar exchange rate against the ruble (similar to the spot rate) since the operations in these markets are the current operations of banks to manage their, balance sheets, client implementation and conversion of the arbitration. In this course tom, designed initially as a forward rate from the course today, during the day as the end of the market today is directly the current rate.
In the afternoon there is market transactions on the spot calculations, the rate of which is also defined as a one-day course outright, but the course tom, but of fundamental importance for the market dollar / ruble they have not.
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