Saxo Bank has released its July trading volumes. During the month, total volumes were $273 billion, a 6.5% decline from June’s figures. On an average daily volume ratio, activity dropped 18% month over month to $11.9 billion. Saxo Bank commented that the figures are “very much in line with the rest of the industry.”
Following a strong first half of the year, the overall forex industry has experienced a double digit decline in volumes during July. The drop has been due to a fall in yen volatility which triggered much of the renewed interest this year. In addition, we have entered the summer months which have traditionally been known for lower trading activity. Looking ahead, with Japan’s market cooling, focus has begun to turn towards the US, where comments from the FED, and Chairman Bernanke have led to conflicting opinions on the direction of the dollar. While the ambiguity can lead to range bound markets, it also tends to lead to large directional trades entered by speculators.
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