Spot FX volumes surge in Asia, Europe, and the US in July

The forex market has seen no shortage of volatility on a global scale in July of this year, especially when it comes to the declining USD and Japanese yen. This led the average daily volume for forex trades in Europe, Asia, and the US to skyrocket.

Foreign exchange explodes in Asia

Some of the largest financial institutions in the industry have recorded major surges in monthly and annual FX volume in July, according to recent reports.

Japanese platform Click 365, owned by the Tokyo Financial Exchange (TFX), for example, recorded a massive surge in currency volumes last month. The platform reported reaching over 2.7 million contracts, which represents a 19% increase compared to the month before. It is also a 6.2% surge compared to July 2023.

As for its average daily volumes, they reached the figure of 119,474. But, the highest activity, similar to the months before, was observed on the USD/JPY pair. The pair saw an average daily volume of 33,596 contracts, representing a massive 56% jump compared to June. Even so, it is actually 15% lower than July 2023.

Furthermore, financial institutions have recorded that the second most popular pair was TRY/JPY, which saw an average daily volume of 26,431 contracts. On both a monthly and annual basis, this represents a jump of 90% when it comes to the number of contracts.

Forex trading surges in the US

The forex volumes also saw a surge in the United States’ market, with the CBOE reporting spot volumes of $1 trillion in July. This is a considerable increase from the June report of $950 billion. An increase in the number of trading days led the ADV indicator to see a decline, however.

In June, trading took place on 20 days, while in July, there were 23 trading days, which led to an average daily volume in June to be at $47.5 billion, while in July the AVD dropped to $44.5 billion.

FX figures in Europe

Meanwhile, in Europe, the Euronext FX saw a surge in total volumes as well. They reached $583 billion, with the ADV indicator hitting the $25 billion mark. This is actually better than the results seen last month when the forex market saw a volume of $558 billion. But, just like in the US, the lower number of trading days resulted in a lower ADV, which dropped down from over $28 billion.

Another report came from the German stock exchange-owned 360T, which placed the July FX volumes at above $707 billion, compared to June’s $634 billion. There was also a modest increase in the ADV indicator, which went from $30.2 billion in June to $30.8 billion in July.

All of the results exceeded the figures from last year, when 360T saw an ADV of $29.6 billion, while CBOE saw $43.9 billion at the time.