Central Banks Reveal Forex Trading Volumes

I know I’ve thrown a lot of forex volumes numbers at you in the past. In fact, some were as recent as from the month of June. But just yesterday, central banks from all around the world published their stats to reveal the results of the semi-annual global central bank foreign exchange turnover survey.

With the participation of the central banks of the U.S., U.K., Japan, Canada, and Australia, we’re able to get a bird’s eye view of the spot forex market for the six-month period that ended in April 2013. Let’s discuss some of the numbers, shall we?

Forex Spot April 2013

As you can see, central banks from all around the world noted impressive gains in the spot market, which is where retail forex trading takes place.

When it comes to sheer volume, the U.K. remains the center for forex trading. Spot trading activity in the country grew 40.0% year on year, almost doubling the volumes seen in the U.S. As for total trading activity in the U.K., the average daily turnover was reported to hit $2.55 trillion in April 2013, rising from its more than two-year lows to forge a new record high!

Unsurprisingly, data also showed that EUR/USD was still the most traded pair in the world. You should know though that USD/JPY came in at a close second.

In fact, the big leap in volumes has been attributed mainly to the high volatility of the Japanese yen from October to April. During this period, USD/JPY moved by about 28%, trading from 78.00 to just below 100.00.

Consequently, the strong interest for the spot forex market took its toll on other forex products. For instance, Japan saw a decline in swaps trading.

So what can we take away from this report?

One, forex trading isn’t a dying industry. On the contrary, it’s thriving! Sure, the report is delayed compared to other releases, but it comes from central banks themselves. Hence, it provides us with reliable confirmation that, indeed, the forex market is growing.

Secondly, if you’re after top-notch liquidity, you should look to trade EUR/USD and USD/JPY!

Overall, the report is good news to us average retail traders. Hopefully the growing industry will lead to higher liquidity, more interest, and better offerings in the retail forex scene.

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