NEX Markets FX Trading Volumes Trending Upward in August

NEX Markets, an electronic markets subsidiary of NEX Group, has just published its latest trading volumes report for August 2017. The month was a notable departure from previous years, with the traditional August lull giving way to more pronounced Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term amidst declines in the USD.

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The summer months have been a mixed bag for many institutional venues – a rash of political scandals and monetary policy events shaped markets, offering plenty of drivers that have not necessarily translated into higher volumes. In many cases, big money has remained on the sidelines, leading to a narrow consolidation of trading volumes at NEX Markets and other venues.

August 2017 marked a figure of $83.0 billion daily for spot foreign exchange trading, coming in at 1.7 percent higher month-over-month from $81.6 billion daily in July 2017. Over a yearly basis however, this figure was much higher, growing by 26.6 percent year-over-year from $65.5 billion in spot FX volume from August 2016.

A steady erosion of the USD this past August as well as escalating rhetoric surrounding North Korea were the primary reasons for the disparity – both of these factors were absent in previous summer months or last August. Moving forward, the season of low volatility across the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market has likely ceased. Volumes are likely to be trending upwards this fall after being confined to a narrow range for the past few months.

In terms of US Treasuries, NEX Group’s electronic trading subsidiary also saw a decline in this segment, reporting $131.2 billion daily during August 2017. This justified a decrease of 9.6 percent on a month basis from $145.2 billion back in July 2017. Relative to 2016, NEX’s latest figures were also lower, albeit by a more muted margin, falling 7.7 percent from $142.1 billion daily in August 2016.