Correlation between geographical position of traders and currencies traded?


Stupid noob question here:

Is there any connection between where traders (small/large/professional/hedge funds) or brokers are geographically based/located, and the currencies they trade in? So, for example, Asian traders would concentrate on AUS, YEN, NZD pairs during the Asian session, and hence the volatility of these currencies would be higher at this time than say EUR/USD?

And a related question: if a U.S. based bank (“smart money”) is wants to consolidate positions during the Asian session, do they do so via stop/limit orders, or entrust their Asian colleagues to execute for them? Maybe it’s not essential to know the mechanics of how they would do it, just curious.

Hoping some wiser and more knowledge member here could provide some kind of answer, please!

Big institutions with global operations do hand positions from time zone to time zone.

As for whether traders focus on their own regional currencies take a look at this breakdown of the most traded forex pairs. The evidence suggests there is a degree of that, but the big pairs still dominate.