Volume Of Foreign Exchange Trades Increases For Jan

Foreign Exchange volumes increase in January 2018

Volumes of Forex trading have increased since the start of 2018, mainly due to investor speculation about a weaker dollar. The volatility of foreign exchange had calmed in recent years as record liquidity levels from central banks flooded markets and left investors with fewer ways to make profits from trading currencies.

Fall In USD

The continued depreciation of the dollar, alongside the US Treasury announcement it welcomed the weaker dollar, have fuelled more activity in currency markets. This has been coupled with central banks limiting stimulus to the markets. The electronic trading platforms are reporting increased activity in fixed income trading volumes as well.

CLS, a leading Forex settlement service, reported that daily traded volumes through January 2018 were up by 24% on the previous year, to $1,805tn. This was also up 15.6% on the December 2017 volumes.

CLS commented that this year they had seen “a much more substantial increase as FX volatility has risen“. Their CEO, David Puth, added that they had noticed a broad trend of year-on-year increases in the last six months of 2017, but that the market had really taken off in January 2018.

Early February saw even more volatility and accelerated trading with an increase on January’s figures of a further 14% reported for the period of 5 February to 8 February alone.

EURUSD Live Price Chart

EURUSD Chart by TradingView


Thomson Reuters commented that Forex trading on their platform had increased to record highs in January 2018 which they attributed to the effects of the implementation of the EU’s Market in Financial Instruments Directive II (MiFID II).

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