After a record-breaking April and a particularly weak May, June 2025 brought relative stabilization in terms of volumes across institutional foreign exchange (FX) markets.

However, geopolitical tensions, ongoing trade wars, and decisions made by Donald Trump, combined with the dollar experiencing its worst performance in 50 years, suggest that market calm remains elusive.

Let’s check how trading volumes changed month-over-month and year-over-year across major platforms, including Cboe FX, FXSpotStream, TFX, Euronext FX, and Fastmatch's 360T.

Subdued Volumes in the United States

Cboe FX volumes declined slightly in June, dropping from May's reported $1.06 trillion to $1.01 trillion. However, due to fewer trading days in the past month, average daily volumes (ADV) actually increased to $48.3 billion compared to $47.9 billion the month prior.

When compared to the same period last year, both metrics showed growth. Total volumes in May 2024 stood at just under $971 billion, with ADV at $47.5 billion.

We observed another month of significant volume weakening following the record-breaking values achieved in April, when Trump-induced volatility drove institutional-level trading activity in the currency markets to unprecedented heights.

FXSpotStream reported similar trends. After a sharp decline in May, June volumes remained at year-to-date lows, recovering modestly from last month's $98.7 billion ADV to $99.8 billion.

Even Steeper Declines in Japan

The situation in the Japanese market tells a more dramatic story. Depreciation was decidedly stronger, as evidenced by volume data from the Click 365 platform operated by the Tokyo Stock Exchange . Total transaction volume reached 1.18 contracts, falling 18% compared to May and nearly 50% compared to the same period last year. The average daily number of traded contracts stood at 56,225.

USD/JPY remained the most popular trading pair, though it experienced a 31% month-over-month decline in turnover and an 18% year-over-year drop.

Weak and Mixed Volumes Across the Old Continent

European exchanges presented a mixed picture. Euronext FX total volume positioned itself at nearly $609.5 billion in June, with average daily volume at $27.7 billion, again declining sharply compared to values reported in recent months. May recorded $719.87 billion, while the record-breaking April reached $893.1 billion.

Fastmatch's 360T platform, conversely, noted a rebound from May's steep decline when total volumes dropped to $605.1 billion from $871 billion reported the month earlier. This time, the figure reached $711.7 billion. ADV grew from $27.5 billion to $33.9 billion in June.

Currently, with the dollar posting its worst year-start in over 50 years and its index testing the lowest levels since 2022, we would typically expect renewed volatility spikes rather than market quieting.