- Despite monthly drop, annual data still shows an increase
- Trading activity was higher during the volatile geopolitical period earlier this year
- July’s spot turnover increased 7% compared to the same month last year
Although FX trading volumes for July on Thomson Reuters’ platforms exceeded those of 2017, the total turnover was nevertheless down on a monthly basis, with a dearth of clear direction in forex markets continuing to have a negative impact on daily trading volumes.
Trading volumes reached $398bn last month, which is about 12% lower than the $452bn that was recorded in June, thus failing to duplicate the robust performance of the previous month.
The company’s average daily volume (ADV) of all FX products, including non-deliverable forwards, swaps options, forwards and spots, experienced a small increase of 2.8% on an annual basis from $387bn last July.
After a rather volatile period in global geopolitics during the first quarter, there was a robust increase in trading activity to reach $463bn in February and $461bn in March, now the top two months on record in terms of trading volumes.
During a month in which the USD strengthened against a basket of other major currencies on expectations of a rate increase in the US and amid renewed tensions surrounding global trade, average volumes in respect of spot trading dropped by 14% to $94bn in July, compared to $103bn the previous month.
On an annual basis, however, July’s spot turnover notched up a 7% increase from $88bn in 2017.
Thomson Reuters’ data reflects the trends reported in the monthly statistics from various major trading platforms. Given its position as a core trading portal for the wholesale forex market, however, the firm offers one of best across-the-board views of total activity.