NEX Markets’ EBS Volumes Soar in January as FX Volatility Returns

FX markets returned to life in January with EBS volumes jumping off to a hot start in 2018.

NEX Markets has released its EBS electronic trading platform volumes for the month ending January 2018. The latest figures reflect a substantial rebound to start off the new year, after FX markets managed to wake up following a few months of slumber.

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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, NEX Markets’ EBS volumes scored a substantial growth during the month. 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.

For much of January however, the USD was under siege as this helped jolt FX markets that had been in a static consolidation for the past two months. In turn, spot FX trading via NEX Markets’ EBS electronic trading platform came in at $104.9 billion daily in January 2018. This constituted a sizable advance of 60.0 percent relative to just $65.5 billion daily in December 2017 – the bounce was on part with other FX industry’s institutional venues.

On a year-over-year basis, the latest reading also beat its 2017 figure by a margin of 13.0 percent from $93.2 billion daily in January 2017. Looking ahead, spot FX volumes markets will digest the arrival of Federal Reserve chairman, Jerome Powell, who will step into the new role at the US central bank on the February 5. Any shift in the rhetoric of the Fed is likely to trigger a new wave of volatility in the coming weeks and months.

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Looking to US Treasuries, EBS Markets also experienced bounce in its volumes on a monthly basis. The latest reading was reported at $185.2 billion per day in January 2018, up 25.0 percent on a monthly basis from $148.5 billion in December 2017. The figure was however higher by just 4.0 percent when measured against its January 2017 counterpart.

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