Multiple independent sources in leading brokerages across the world are reporting to Forex Magnates that the ECB press conference day, which saw the EUR/USD pair trade within a 150 pips range in a rather violent fashion, has been the most active trading day of the year in terms of FX volumes. As the ECB’s President, Mario Draghi, unveiled a new arsenal of monetary policy tools, trading activity has increased to levels unseen up until now in 2014.
LMAX’s CEO, David Mercer, shared in a YouTube video commentary that last Thursday, the 5th of June, had been the highest volumes day ever for the company. He stated, “After the slow periods we’ve had in the FX markets this year and tremendously low volatility, we saw a big rebound yesterday after the ECB has cut interest rates by only 10 basis points.”
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He proceeded to express his views on the state of volatility in the FX market, saying, “The event shows what’s possible in the FX market and that companies like LMAX should continue forward and ride out of the low volatility period.” Mr. Mercer concluded, “June promises to be a better month for the FX market.”