GMO Click Reports Sharp Trading Volumes Decline in February

Japanese clients decreased their risk appetite amid low volatility in JPY exchange rates.

GMO Click has reported its numbers for February, showing a monthly decline in trading volumes. The drop was triggered by the lower volatility in Japanese yen crosses throughout the past several weeks.

Trading volumes amounted to ¥42.6 trillion ($373 billion), which is a decline of 30 percent when compared to the previous month. The figure is also lower by 32.5 percent when compared to a year ago, when GMO Click reported 4th highest number for 2016.

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The figure is the third lowest number since 2015, reflecting the substantial impact of low volatility on the Japanese market.

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Retail Traders in Japan on Hold

Japanese retail traders are typically much more active than their peers across the rest of the world. Their activity has been hampered by increased uncertainty about the future of monetary policy in the country.

In the aftermath of the meeting between Donald Trump and Shinzo Abe, the Japanese yen took a leg higher, rallying against all major currencies. The rally was arrested only in the final days of the month, as Federal Reserve officials ramped up their hawkish talk, signaling to the market that they are seriously considering a rate hike in March.

GMO Click continues to be the largest Japanese brokerage and globally with its volumes hitting a peak around $659 billion during the month of December.

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