FX Volumes May Be the Next Big Bullish Market

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.

Edward J. Moya is the Chief Market Strategist for edmoya.com, an educational website for foreign exchange and commodity traders. He has over 15 years of investment industry experience in forex, stocks, options and futures. At edmoya.com, Mr. Moya writes daily currency and commodity analysis and has authored numerous articles on trading using both technical and fundamental analysis for major financial publications. He is a contributor of technical and fundamental analysis in currencies and commodities to SFO, Market News International, and Forex Factory.

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