Saxo Bank has just reported its monthly volumes for March 2018. The latest figures saw a sizable consolidation in key volumes segments, failing to overtake a number of recent highs seen in February. While Saxo Bank had started 2018 off on a positive note, the latest readings indicated a sizable pullback in both FX and equities trading.
March 2018 had no shortage of developments pertinent to FX markets. In particular, the Trump administration unleashed a new wave of risk factors and volatility, following its aggressive stance towards tariffs – likely signaling a coming trade war. Despite this, most FX pairs remained bound in relatively narrow trading ranges, ultimately stifling volumes growth.
In terms of Saxo Bank’s latest figures, its total monthly FX volume in March 2018 was reported at $317.2 billion. This was the Danish broker’s lowest reading of 2018, and a decline relative to last month. Moreover, this figure corresponds to a monthly retreat of 26.7 percent compared to $433.2 billion in February 2018 – a record all-time high.
Saxo Bank’s average daily FX volume during March 2018 was also much lower, reported at just $14.4 billion per day. This compared with $21.7 billion per day in February 2018 or 33.6 lower month-over-month.
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While the figures are skewed negatively on a monthly basis, Saxo Bank is still outperforming its 2017 counterpart in the FX space. Its March 2018 total FX volume is 15.2 percent higher year-over-year from $275.2 billion in March 2017. Additionally, average daily FX volume also climbed by a margin of 20.0 percent yearly from $12.0 billion per day in March 2017.
The results at Saxo Bank are largely on par with other retail venues. Most brokers saw an explosion of volumes en route to record levels in February, followed by a consolidation in March. Looking ahead, a looming trade war could also ensure high levels of volatility across markets. This would be a notable departure relative to last year, which was defined by isolated pockets of activity amidst widely subdued markets.
Equities pull back on monthly basis
FX volumes were not the only segment to pull back at Saxo Bank in March 2018. Equities saw a retreat as well, recording a figure of $109.2 billion during the month, down 12.4 percent month-over-month from $124.7 billion in February 2018. In terms of monthly averages, the segment also fell to $5.0 billion per day in March 2018, falling off its highest all-time level last month of $6.2 billion per day.