Two of the most important questions in trading are whether exploitable inefficiencies develop in the markets, and if such inefficiencies persist as a market evolves. A particularly interesting case involves the possibilities associated with low-volatility periods during which currency prices trade in limited ranges. This article explores this issue in the context of the Asian trading session (11 p.m. to 7 a.m. GMT) from 2006 to 2010 in the Euro/U.S. dollar (EUR/ USD), Euro/British pound (EUR/GBP), and Euro/Swiss franc (EUR/CHF).

These currency pairs were chosen because of their relative inactivity during the Asian session, none of them containing a currency native to this trading period. By evaluating certain characteristics of these currency pairs during the Asian session over a four-year period we can determine whether their character has changed over time, or if they behave in a predictable manner that could be exploited in trading.