Trading volumes at Japanese broker GMO Click have tanked by another 20 per cent after dropping 35 per cent in the previous month. The numbers are confirming what we already noticed after the monthly volumes release from Monex Group, earlier this morning – the Japanese market is bound to contract unless we see additional easing from the Bank of Japan or a stock market rout.
In both cases the Japanese yen is likely to move substantially which should provide the necessary impetus for Japanese traders to get back into trading currencies. In a market where pairs including the local currency are widely dominating the mix of trades, the range trading environment which is hanging over the revenues of FX brokers in Japan is persisting.
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Looking at the recent trends, the monthly trading figures at GMO Click in the over-the-counter segment have widely fluctuated since spiking in September to ¥141 trillion or $1.18 trillion (the figure was the highest number for GMO Click ever in JPY terms). Since then, the number has declined by almost 50 per cent to ¥72.1 trillion ($588 billion), which is also lower by 20 per cent when compared to October.
The value of exchange traded contracts brokered by GMO Click dropped for a third consecutive month to a total of $2.8 billion. Both figures have marked the worst monthly volumes month for the Japanese brokerage since August 2014.