Oil below $70 sending more FX trading volumes to CFDs during November

LeapRate Exclusive… LeapRate has learned, in discussions with various retail forex brokers in different locations around the globe, that November FX trading volumes will be somewhat lower than the record / near-record volumes reported by many in the industry during September and October. After two months of near nonstop volatility, the industry standard EURUSD has spent most of November in a fairly tight 1.24-1.25 trading band.

However a lot of that slack has apparently been picked up by CFD trading – in particular oil and gold CFDs, as those commodities took over the volatility baton during November.

In particular crude oil – as OPEC decided against a production cut on Thursday, crude prices dropped by more than 6% and traded below $70 per barrel for the first time in more than four years. This marks a more than 30% drop in crude prices since the summer, as demonstrated by the chart below, which has made commodity CFDs a leading trade vehicle during much of the past month.

Crude Oil prices below 70


WTI crude oil prices, past five years. Source: CNBC.

With a number of leading oil industry analysts and observers calling for further volatility and drops in oil prices – with several looking at the possibility of $30-$40 per bbl oil – this might be just the beginning of a growing CFD trading trend.

We’ll begin to see actual trading results for November early next week. Stay tuned to LeapRate…

Read Also: