Saxo Bank’s January FX Volumes Climb to Multi-Year Highs, Equities Surge

Volatility has returned to FX markets, driving Saxo's volumes to new heights in 2018.

Saxo Bank has just announced its monthly volumes for ending January 2018. The latest figures reflect a bounce in key volumes segments following a huge uptick in volatility over the past month. With markets now back in full swing, Saxo Bank has started 2018 off on a positive note, securing gains in its FX and equities trading.

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January had a number of important developments for FX markets. Following a period of multi-month inactivity across global markets, the FX space exploded in January 2018. With more normalized trading schedules and volatility now returning in full, market activity was on the upswing. Of note, January 25 proved to be the most volatile day for the FX market with comments from Treasury Secretary Mnuchin and the ECB’s Mario Draghi moving the USD materially against the euro.

In terms of Saxo Bank’s latest figures, its total monthly FX volume was reported at $366.3 billion in January 2018. This was the Danish broker’s highest reading in the past two years, underscoring a very active month while corresponding to a monthly growth of 85.2 percent relative to $197.8 in December 2017.

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Saxo Bank’s average daily FX volume during January 2018 was also substantially higher, reported at $16.7 billion per day over 22 trading days. This compared with just $9.4 billion per day over 21 days in December 2017, or 77.6 percent higher month-over-month.

The strong FX figures relate to the extreme levels of volatility currently reverberating across FX markets. Indeed, the USD has been under siege the past month, helping kindle overall trading activity. The results at Saxo Bank are on par with other retail venues, though Saxo seems to have scored an even larger bounce than other brokers during January.

Over a yearly timetable, January 2018’s FX figures are much higher than they were in 2017, rising by 24.1 percent year-over-year from $295.2 billion in January 2017. Over the same period, average daily FX volume also climbed by 24.6 percent.

Equities explode on monthly basis

FX volumes were not the only segment to explode in January 2018. Equities saw a sizeable surge as well, recording a figure of $81.2 billion during the month, up 47.9 percent month-over-month from $54.9 billion in December 2017. In terms of monthly average, the segment also climbed to $3.7 billion per day, its highest level in two years.

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