The Tokyo Financial Exchange (TFX) posted its June results. During the month, average daily contracts of its Click 365 FX trading product was 293,997, with total volume of 5,879,893. The figures marked a 5.8% increase from May. Despite increases in OTC activity in Japan, exchanged traded Click 365 volumes underperformed the market last month, showing a decline in activity. Volumes were driven lower by a substantial drop in EURJPY trading which had been the most traded forex pair during much of 2012.
During June, trading in the EURJPY continued to decline with the USDJPY easily taking the top stop among most traded forex pairs. Picking up the slack was renewed interest in commodity currencies, with the AUDJPY volumes rising 31.9% MoM, along with similar activity in the NZDJPY. Due to falling precious metals prices and deleveraging taking place last month, the Aussie was one of the more volatile currencies, with the AUDJPY falling to a six month low, over 15% below its 2013 high. Looking ahead, the diversification of volumes away from being primarily driven by the USDJPY bodes well for the rest of the Japanese market. As such, it will be interesting to see if the world’s largest retail forex broker by volume, GMO Click, was able to top $1 trillion in monthly volumes during June.
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