FX Volumes Down But Better Volatility Spurs Optimism
07/29/2014 9:00 am EST
Adam Button of ForexLive.com discusses the Bank of England’s semi-annual survey that gives forex traders a sense of what currencies are traded the most often, and shares some good news regarding volatility.
The Bank of England’s semi-annual survey of the foreign exchange market showed an average daily turnover of $2.402 trillion in April, that’s up 7% from October but down 6% year-over-year.
A table offers a sense of what currencies are traded the most often.
The good news for traders is that volatility may (finally) be on the upswing. Bloomberg looks at better trading in the past two weeks after JPMorgan Chase & Co.’s Global FX Volatility Index hit a record low earlier in the month:
The gauge reached 5.60% Monday, up from an all-time low on a closing basis of 5.29% on July 3. The index had tumbled from a high for the year of 8.98% on February 3 and a peak of 27% during the worst of the global financial crisis in October 2008.
By Adam Button, Editor, ForexLive.com