Cboe FX Volumes Signal Solid Uptrend despite December Lull

Institutional spot foreign exchange training venue, Cboe FX Markets, has published its volumes for December, showing a monthly slump in the demand at the end of 2020 but a positive yearly uptick. This is a trend in the forex market, given the year-end holidays.

A quick analysis of the daily volumes of Cboe’s spot FX volumes for December 2020 shows that the demand drastically went down in the last week of the month. While on Christmas eve, the daily volume dipped to $14.68 billion, and the institutional Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term demand peaked on December 21 with $42.56 billion.

The total trading volume in the month came in at $719.12 billion, which was down from the previous month’s $789.05 billion. That was a month-on-month decline of 8.9 percent.

Cboe’s average daily forex volume slumped to $32.69 billion. The figure was $37.57 in the previous month. It is to be noted that December had 22 trading days compared to November’s 21.

The Market Trend Is Positive

When compared with the same month a year ago, last month’s numbers project a positive trend of the market. Cboe reported $628.11 billion in total FX volumes in December 2019. This means the forex demand on its platform saw a yearly uptick of 14.45 percent last month.

Comparing the quarterly figures, Cboe ended the last 2020 quarter with solid performance, which was mostly dragged by the excellent November volumes.

The ADV in the quarter remained at $33.68 billion, which was only behind Q1 of 2020, which spiked due to the March volumes. Notably, Cboe breached the trillion-dollar mark with its trading volumes in March.

The quarterly ADV number stood at $30.07 billion in the same quarter the previous year, cementing the ongoing uptrend in the Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term industry.