Japanese volumes steady

TFX Trading Volumes Remain Flat as Japanese Yen Takes a Dive

Trading volumes on the Tokyo Financial Exchange have not been greatly affected by the recent Japanese yen slump

The number of margin foreign exchange contracts traded by Click 365 on the Tokyo Financial Exchange in May has remained flat month-on-month. A total of 2,764,360 contracts changed hands over the month. The figure was reported after the Japanese yen hit its lowest level against the U.S. dollar since June 2007.

Foreign exchange trading has remained popular in Japan due to speculation that the subpar growth rate of the economy and benign inflation figures will prompt the Bank of Japan to undertake even more monetary stimulus than the current 80 trillion Japanese yen set as a target for bond purchases.

The most actively traded pair during the month was the USD/JPY, where 913,135 contracts changed hands. The figure is higher by 3.9 percent when compared to the previous month and 68.3% higher year-on-year.

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Currency pairs that have marked the most growth in trading volumes for May are the GBP/JPY and the NZD/JPY. While the U.K. election results triggered a short-term rally for the British pound, it fizzled out later leaving the pair vulnerable to corrections.

Meanwhile, the New Zealand dollar has remained under pressure against its U.S. counterpart, and while the high yield has left it attractive against the Japanese yen it has not managed to register substantial gains during the month. Trading in the GBP/JPY gained 27.5 percent in May, with the number of deals in the NZD/JPY increasing by 29.2 percent.

The most notable decline in trading activity when compared to the previous month was the EUR/JPY pair, which lost 10.7 percent in May.

The cumulative year-on-year growth for all Click 365 exchange trade margin foreign exchange contracts remained buoyant with the figure marking a 47.1 percent rise when compared to last May.

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