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FX Market is Slowing! Forex Trading Volume Shrinks

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  • FX Market is Slowing! Forex Trading Volume Shrinks

    here is an extract from a report that ive fond online, has it affected any of your trading?

    Unfortunately the forex market has not escape the impact of global deleveraging and the failure of Lehman Brothers in 2008. Central banks from around the world have released their semi-annual foreign exchange surveys and based upon all of the reports, forex trading volume decreased significantly between April 2008 and April 2009. Investors large and small have reduced risk with carry trades unwound aggressively. The lack of participation may explain why the major currency pairs have been stuck in a range since the beginning of May. In New York for example, forex spot trading volume fell to the lowest level in more than 3 years.

    London remains the most active forex trading center followed by NY and Tokyo. The EUR/USD is still the most actively traded currency pair by far.

    Here are some stats (all of data is in billions of U.S. dollars):


    - Britain is the world’s biggest FX trading hub with over a third of global turnover.
    - Average daily turnover in forex products fell 20% since October 2008 to $1,356B, down 25% from April 2008
    - Majority of decline was attributed to less activity in spot FX which fell 28%
    - The most heavily traded currency pair was euro/dollar, which accounted for 32% of total turnover.

  • #2
    Re: FX Market is Slowing! Forex Trading Volume Shrinks

    with people not buying as much the need for exchange has slowed.. Plus we are at the peak of summer vacations in europe... expect it to start increasing again real soon.. The fall is always the best anyway..

    Comment


    • #3
      Re: FX Market is Slowing! Forex Trading Volume Shrinks

      Originally posted by Ajata
      here is an extract from a report that ive fond online, has it affected any of your trading?

      Unfortunately the forex market has not escape the impact of global deleveraging and the failure of Lehman Brothers in 2008. Central banks from around the world have released their semi-annual foreign exchange surveys and based upon all of the reports, forex trading volume decreased significantly between April 2008 and April 2009. Investors large and small have reduced risk with carry trades unwound aggressively. The lack of participation may explain why the major currency pairs have been stuck in a range since the beginning of May. In New York for example, forex spot trading volume fell to the lowest level in more than 3 years.

      London remains the most active forex trading center followed by NY and Tokyo. The EUR/USD is still the most actively traded currency pair by far.

      Here are some stats (all of data is in billions of U.S. dollars):


      - Britain is the world’s biggest FX trading hub with over a third of global turnover.
      - Average daily turnover in forex products fell 20% since October 2008 to $1,356B, down 25% from April 2008
      - Majority of decline was attributed to less activity in spot FX which fell 28%
      - The most heavily traded currency pair was euro/dollar, which accounted for 32% of total turnover.
      Personally, I haven't been trading since a while before the crisis began. However, I plan to restart soon. There are probably many others in the same situation.

      Comment


      • #4
        Re: FX Market is Slowing! Forex Trading Volume Shrinks

        Originally posted by Hacker
        with people not buying as much the need for exchange has slowed.. Plus we are at the peak of summer vacations in europe... expect it to start increasing again real soon.. The fall is always the best anyway..
        Interesting, i did not know that fall is the best time for fx trading....

        Comment


        • #5
          Re: FX Market is Slowing! Forex Trading Volume Shrinks

          Still the biggest financial game in town

          Comment


          • #6
            Re: FX Market is Slowing! Forex Trading Volume Shrinks

            I guess the NFA rule change doesn't stop the game after all.

            Comment


            • #7
              Re: FX Market is Slowing! Forex Trading Volume Shrinks

              Originally posted by gkris6
              I guess the NFA rule change doesn't stop the game after all.
              I have an ea that monitors/counts actual tick counts etc.. The brokers I have for demo include FXDD, FxPro, NordMarkets, FXSol Australia and Collective.. My live accounts are on 3 of those.. I have noticed in the last 2 weeks that FXDD tick count is way down... As of Today the FxPro tick count now exceeds FXDD.. That has not happened since Ive been doing this stuff (2 years).. FXDD has always kinda been my bell weather if you will.. Well that has changed.. I am now kinda getting eratic tick and volume counts with them.. The ONLY thing I can contribute this sudden 2 week downturn to in just this one broker is the NFA junk....

              Originally posted by hatter1000
              Still the biggest financial game in town
              Well actually OIL is the biggest money mover on the planet.. No matter how you trade it OIL moves more cash than anything.. I trade oil almost every day on several brokers, including some forex brokers, FxPro being one..

              Heres what OIL has done Today.. Several 100 pip or more trends..

              Comment


              • #8
                Re: FX Market is Slowing! Forex Trading Volume Shrinks

                Can you trade oil the same as forex? I saw how in fxpro you can trade a lot more than currency.

                Comment


                • #9
                  Re: FX Market is Slowing! Forex Trading Volume Shrinks

                  I dont think that FXDD is part of the NFA...unless they just joined up.

                  Comment


                  • #10
                    Re: FX Market is Slowing! Forex Trading Volume Shrinks

                    oil would be the escape for forex traders ,volume is still hight
                    but there will be no oil after some years lol so you will not have this opportunity after

                    Comment


                    • #11
                      Re: FX Market is Slowing! Forex Trading Volume Shrinks

                      interesting information, although there is a lot of information needed to support

                      Comment


                      • #12
                        Re: FX Market is Slowing! Forex Trading Volume Shrinks

                        I have an ea that monitors/counts actual tick counts etc.. The brokers I have for demo include FXDD, FxPro, NordMarkets, FXSol Australia and Collective.. My live accounts are on 3 of those.. I have noticed in the last 2 weeks that FXDD tick count is way down... As of Today the FxPro tick count now exceeds FXDD.. That has not happened since Ive been doing this stuff (2 years).. FXDD has always kinda been my bell weather if you will.. Well that has changed.. I am now kinda getting eratic tick and volume counts with them.. The ONLY thing I can contribute this sudden 2 week downturn to in just this one broker is the NFA junk....

                        Originally posted by hatter1000
                        Still the biggest financial game in town
                        Well actually OIL is the biggest money mover on the planet.. No matter how you trade it OIL moves more cash than anything.. I trade oil almost every day on several brokers, including some forex brokers, FxPro being one..

                        Heres what OIL has done Today.. Several 100 pip or more trends..



                        Hacker,please can you share with us the EA thast you are using and the indicator/s that are showing in that screenshot!?

                        Comment


                        • #13
                          Re: FX Market is Slowing! Forex Trading Volume Shrinks

                          Originally posted by mikemast77
                          I dont think that FXDD is part of the NFA...unless they just joined up.
                          FXDD has their application in and are awaiting approval

                          Comment


                          • #14
                            Re: FX Market is Slowing! Forex Trading Volume Shrinks

                            Hello,

                            Not only can you use oil in your decision to trading the eur/usd but you can use gold and the Dow Jones Industrials Average.
                            I use all three from time to time when I look to trade the eur/usd. If people are interested in this type of trading you can
                            get more information at h**p://www.dailyfx.com/story/dailyfx_reports/cross_markets_data_reaction/Forex_Correlations_Signal_Euro_US_Dollar_122029276 4363.html

                            Below is an example of oil and the eur/usd.
                            Euro/US Dollar and Oil Futures
                            The correlation between the EURUSD and NYMEX Crude Oil futures has recently hit its highest levels since the inception of the euro—underlining the importance of commodity prices in determining the trajectory of the US dollar. It seems that the relationship between oil and the US dollar remains stable, and we would argue that it will be important to watch for any significant price moves in oil while trading the US dollar and vice-versa.

                            Comment


                            • #15
                              Re: FX Market is Slowing! Forex Trading Volume Shrinks

                              In other trading, benchmark crude for October delivery fell 9 cents to settle at $67.96 a barrel on the New York Mercantile Exchange. In London, Brent crude dropped 54 cents to settle at $67.12 on the ICE Futures exchange.

                              On Monday, Spokane, Washington-based utility Avista Corp. said it wants to reduce natural gas prices for its Oregon customers to the lowest levels in five years. And in the Midwest, Alliant Energy Corp. and Wisconsin Public Service Corp. both predicted heating bills would drop around 20 percent.

                              Comment

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