EBS’ FX Volumes Grind Lower in August, Opening Up Fresh Lows

June's resurgence in FX volumes is ancient history as EBS' latest figures suggests a fresh downtrend.

ICAP has reported its latest batch of monthly statistics and volumes covering its electronic foreign exchange (FX) platform EBS for the month of August 2016. The latest figures saw FX volumes fall to yearly lows, continuing a decent after a brief surge in the aftermath of the Brexit referendum in June, according to an ICAP statement.

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EBS’ August 2016 FX volumes have been unable to get on track in back to back months, and despite rebounding in June, the latest figures have opened up a fresh decline in volumes, which came in at just $68.4 billion during August 2016.

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As such, the latest EBS’ FX volumes in August reflect a decline of -18.1% MoM from $83.0 billion daily in July 2016. Furthermore, the latest figures were also sizably lower than EBS’ August 2015 reading of $100.3 billion, which related to a YoY loss of -31.8%. The lackluster performance in August 2016 was also the norm relative to other institutional exchanges.

Yearly Lows

FX volumes have been pointed lower in August as markets were locked in wait-and-see mode thanks to the US Federal Reserve’s posturing about a September rate hike that never came to fruition. Coupled with traditionally lower volumes due to the summer months, EBS’ FX figures were understandably lower.

Finally, ICAP’s US Treasury activity during August 2016 was also on the decline, falling to $142.1 billion from $153.8 billion in July 2016, or -7.6% MoM. The decline was larger over a YoY basis, retreating off an August 2015 figure of $182.7 billion or -15.8% YoY.

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