Win. 7 Market 24h Clock gadget (major Stock Exchanges on 1 dial)

Trading activities in these currency pairs are particularly active because these transactions directly involve the U.S. dollar.
When the U.S. equity and bond markets are open during the U.S. session, foreign investor have to convert their domestic currency, such as the Japanese yen, the euro, and the Swiss franc, into dollar-dominated assets in order to carry out their transactions. With the market overlap, GBP/JPY and GBP/CHF have the widest daily ranges.

Most currencies in the FX market are quoted with the U.S. dollar as the base and primarily traded against it before translating into other currencies. In the GBP/JPY case, for a British pound to be converted into Japanese yen, it has to be traded against the dollar first, then into yen. Therefore, a GBP/JPY trade involves two different currency transactions, GBP/USD and USD/JPY, and its volatility is ultimately determined by the correlations of the two derived currency pairs.

Since GBP/USD and USD/JPY have negative correlations, which means their direction of movements are opposite to each other, the volatility of GBP/JPY is thus amplified. USD/CHF movement can also be explained similarly but has a greater intensity.

Trading currency pairs with high volatility can be very lucrative, but it is also important to bear in mind that the risk involved is very high as well. Traders should continuously revise their strategies in response to market conditions because abrupt movements in exchange rates can easily stop out their trading orders or nullify their long-term strategies.

For the more risk-averse traders, USD/JPY, EUR/USD, and USD/CAD appear to be good choices since these pairs offer traders a decent amount of trading range to gamer handsome profits with a smaller amount of risk. Their highly liquid nature 53 allows an investor to secure profits or cut losses promptly and efficiently. The modest volatility of these pairs also provides a favorable environment for traders who want to pursue long-term strategies.

U.S. - European Overlap 13.30-16.00 UTC
The Forex markets lend to be most active when the hours of the world's two largest trading centers overlap. The range of trading constitutes on average 70 percent of the total average range of trading for all of the currency pairs during the European trading hours and 80 percent of the total average range of trading for all of the currency pairs during U.S. trading hours. Just these percentages alone tell day traders that if they are really looking for volatile price action and wide ranges and cannot sit at the screen all day, the time to trade is the U.S. and European overlap.

http://mc24.ch/images/tabl6.gif

European - Asian Overlap 07.00 –09.00 UTC
The trade intensity in the European-Asian overlap is far lower than in any other session because of the slow trading during the Asian morning. With trading extremely thin during these hours, risk-tolerant and risk-loving traders can take a two-hour nap or spend the time positioning themselves for a breakout move at the European or U.S. open.

http://mc24.ch/images/tabl5.gif

Strategically important moments of the trading day
UTC/GMT; DST (Winter time)
Sunday 21:00 (22:00) - Opening of the Trade
rollback after Friday; it is better to watch the terminal closely
21:00 DST (22:00) - opening of the trading session in Wellington (New Zealand) nothing happens, the trading is slack.
23:00 DST (24:00) - opening of the trading session in Sydney, the trade becomes more brisk in anticipation of Tokyo trading session opening in an hour.
Before Tokyo freely two transactions may be made (to both sides; with profit of 5-10 pips)
24:00 - Tokyo trading session opening, trade surges. It is worth to take into account corporate relations between Asian investors. If you see one going one or another direction - the others would follow his direction all at once.
01:00 - Singapore session opening; the trade surges in anticipation of openings of two big stocks in Shanghai and Hong Kong. Right before the Chinese session Euro usually declines until the opening of Shanghai and Hong Kong.
01:00 - 01:30 - Euro declines until Chinese Session, but there can be exceptions from time to time. Be careful.
01:30 - opening of the Shanghai and the Hong Kong Sessions. There usually begins large-scale trade in the whole Asian-pacific region

A word about China
(Shanghai and Hong Kong working hours clash)
A structure of Chinese export is such that most part of articles is paid in dollars, so it is logical to suppose that China has no need in additional dollars. That is why there is usually EUR/USD growing during the Chinese session.
China is one of the countries that possesses the largest gold and currency reserves on the planet. If China was going to sell some part of its dollars, there would be enough panic for Euro to grow up. In addition, China is the biggest lender of the United States.
It seems that it would be unprofitable for China to get rid of the dollar and threats to diversify foreign exchange reserves are mostly speculative.
Pay attention to China and its actions.
If Chinese are buying the dollar - the whole day will be like a casino.