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How did the forex industry fare in the last month of 2013? Take a look at these latest metrics to find out!

According to data released by Thomson Reuters based on its dealing platforms,  forex trading volume slumped in December 2013 as average daily volume in the spot market slipped to $92 billion, its lowest level since January 2010. This marks an 11.5% monthly decline from November 2013’s $104 billion in average daily volume and a 9.8% annual decline from December 2012.

This puts Thomson Reuter’s average daily volume for 2013 at $120 billion, 6% lower compared to that of 2012 and 20% below 2011’s $150 billion figure.

As for order flow data garnered from FXall, average daily volume is down from $108 billion in November to $100 billion in December 2013. Similarly, volumes at IBFX and TradeStation are down to a multi-year low of roughly $15 billion, representing a 15% decline from November levels.

Industry experts noted that this decline in trading volumes for December can be attributed to seasonal factors, as majority of traders are on vacation towards the end of the month.

On the other hand, Japanese financial services firm MONEX Group reported a continued increase in trading activity in the last few weeks of 2013. OTC average daily volumes were up by a jaw-dropping 27.12% from November’s 110,645 million JPY figure. The number of active forex accounts also improved in December, rising by 0.37% from November’s 881,135 in accounts. For the entire year, the number of active forex accounts is up by 5.95%.

Much of the pick-up in forex trading activity in Japan can be attributed to the rise in volatility among yen pairs throughout 2013. This almost makes up for the downturn in trade volume among other major economies, which was mostly a result of lower volatility among dollar pairs.

Now that market watchers are dubbing 2014 as the “Year of the Dollar” though, do you think we’ll see a rebound in overall trading volumes sooner or later? Let us know by voting through the poll below!