Saxo Bank has reported marginal improvement for its FX trading for June. This is after May saw a significant drop when compared to the previous months trading through 2021. Saxo Bank saw its monthly volume for June increase to $106.1 billion after the previous yearly low in May at $104.3 billion.
However, this isn’t a complete positive report for the bank. While the overall monthly volume has shown a slight increase, there was a fall in the daily average volume. For June, Saxo Bank hit a daily average of $4.8 billion. This is down from the previous month’s daily average volume, which was $5 billion.
It shows that while the monthly total increased during June, this is only due to more trading days in June than in May. The actual trading volume is still falling when compared to the figures across the rest of the month.
This is a significant drop from the highest trading volumes that were hit during March. The peak brought in a total volume of $170.5 billion with a daily average of $7.4 billion. Since then, there has been a fall every month, with April showing a total of $124.2 billion and a daily average of $5.6 billion.
This demonstrates that the monthly trading volume showing a slight increase isn’t necessarily positive news. The trend over the last three months shows continual drops in the average daily trading volumes for FX.
What’s especially worrying for the bank is that compared to the same figures at this point last year, there is also a negative trend. When compared to June 2020, there is a more than $50 billion shortfall. June 2020 had a total monthly trading volume of $161.4 billion and a daily trading average of $7.3 billion.
The only month in 2021 that has managed to outperform its 2020 equivalent is January. Here January 2021 has managed to bring in $3.2 billion more than January 2020. A figure of $118.2 billion for January 2021 shows that the rapid decrease for the following months isn’t a positive trend at all.
The total monthly trading volume across all instruments is also down for Saxo Bank. It’s not just FX that is struggling. At $282.8 billion, this is less than the $298.6 billion that Saxo Bank posted in May and is down from the $321.9 billion that Saxo Bank posted during June 2020. Saxo Bank is down on previous performance by most metrics, so there could be troubling times ahead.
Saxo made a couple of critical appointments recently: Simon O’Malley was named Chief Financial Officer at Saxo Markets UK, Richard Douglas became CEO of the Hong Kong business and yesterday it was announced that Mette Ingeman Pedersen will join as Saxo Group CFO before 1 November.
Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.