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Screenshot of a breaking news alert e-mail from Q2 2017
After several months of lackluster FX trading volumes on the heels of low volatility in the currency markets, finally a ray of hope.
The CME Group (NASDAQ:CME), the world’s largest derivatives marketplace, has reported that it saw record trading volumes for British pound (GBPUSD) futures contracts this past Thursday June 12. British pound futures volume reached 337,633 contracts, compared to the previous record back in May 2010, of 307,280 contracts.
Overall, CME reported that for June overall it is seeing the highest average daily volume for British pound futures since May 2010 at 161,000 contracts. Open interest is at its sixth highest level ever, and 41% higher than the same day last year with 414,145 contracts.
Our sources tell us that similar FX volume metric pickups are being seen in other currency pairs, and in retail FX trading as well. Volatility in June has been high, with the British pound soaring to its highest level versus the US Dollar since 2008 on rate hike speculation, while at the same time the Euro has fallen versus the Dollar to a five month low – bringing FX traders back to the table.
The news could not come at a better time for Forex brokers. LeapRate’s Retail FX Volume Index saw its lowest level in April since 2012, at $281 billion daily – the third consecutive month global retail FX volumes have been below $300 billion daily, after hitting nearly $325 billion in mid-2013.
For the CME Group press release on its record GBPUSD volumes click here.