Thomson Reuters reported an increase of 15% in currency trading volumes on their platforms. Trading volumes are near record levels and expectations for further increases remain strong as monetary policies diverge amongst the advanced economies.
Daily spot trading at Thomson Reuters fell to $107 billion in August verse $114 billion in the prior month. With your large hedge funds, money managers and institutional traders taking advantage of vacation days in August, September appears poised for quite a break out with the tremendous trade flows out and back into emerging markets as everyone braces for the Fed’s decision.
While the euro dollar is the most popular currency pair traded globally, the tight ranges should break out this month and that should be very supportive for larger trading volumes.