Saxo Bank has just posted its trading volumes for November. The abysmal volatility conditions across major FX pairs pushed the foreign exchange figure to a new low. The broad volume decline wasn’t offset by a relatively active stock market and commodities trading.
Total trading volumes last months were down almost 32 percent on a yearly basis, to $264.9 billion. The number ticked lower by almost 13 percent on a monthly basis.
During November, Saxo Bank’s FX business amounted to $170.4 billion. The figure is lower by 9.2 percent month-on-month and by over 38 percent year-on-year. Average daily volumes totaled $12.0 billion across all assets and $7.7 billion in FX.
Asset Class Breakdown
Aside from FX, Saxo and is also reporting on three other asset classes: commodities, stocks, fixed income.
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The stock market volatility that has been around throughout last month and carried through into December didn’t help volumes much. A decline of 20 percent month-on-month meant that equities accounted for $67.1 billion traded in November. On a year-on-year basis, the figure was more or less flat.
Considering the ample volatility in commodity markets and especially oil and natural gas, seeing a monthly decline in commodities is also a surprise. The figure dropped by about seven percent to $20.9 billion. The number was also lower by 30 percent when compared to last year.
Fixed income trading in November was slow once again. Market participants have been quiet ahead of the final Fed decision for 2018. Activity dropped by almost 30 percent when compared to October and by 50 percent when compared to November 2017.
Market volatility in December appears to be back on track. The British pound is the key driver, alongside with equities. Further Trump trade uncertainty and any prospects for a pause from the US Federal Reserve are expected to boost trading activity this month.
With Brexit headlines dominating the FX markets, the current veil of uncertainty warrants a couple of interesting weeks before the holidays.