Still markedly lower by more than a third from a year ago levels, best number since July
According to data released by ICAP, volumes on their EBS platform have risen substantially from December marking the first substantial increase we have seen in a while. Traded forex volumes have reached $87.5 billion from $71 billion a month earlier. However if the number is compared to a year ago, we are seeing a different story – volumes are down 38% from levels seen last January. This is the highest number since July when summer volumes numbers have started a slump for ICAP.
We will be keenly awaiting numbers from competitors Thomson Reuters and FXall. Meanwhile according to our expectations this can be the first of a couple of months of globally rising volumes. Emerging markets are still unsettling and investors jittery from the upcoming effects from the Federal Reserve’s tapering efforts.
Major currencies like the Euro, the Swiss franc and the Japanese yen have been the strong side of ICAP’s business, while competitors from Thomson Reuters are seeing more volumes from Commonwealth currencies such as the British pound, Australian and New Zealand dollars.