EBS’ FX Volumes Grind Lower in August, Opening Up Fresh Lows

ICAP has reported its latest batch of monthly statistics and volumes covering its electronic foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) platform EBS for the month of August 2016. The latest figures saw FX volumes fall to yearly lows, continuing a decent after a brief surge in the aftermath of the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum in June, according to an ICAP statement.

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EBS’ August 2016 FX volumes have been unable to get on track in back to back months, and despite rebounding in June, the latest figures have opened up a fresh decline in volumes, which came in at just $68.4 billion during August 2016.

As such, the latest EBS’ FX volumes in August reflect a decline of -18.1% MoM from $83.0 billion daily in July 2016. Furthermore, the latest figures were also sizably lower than EBS’ August 2015 reading of $100.3 billion, which related to a YoY loss of -31.8%. The lackluster performance in August 2016 was also the norm relative to other institutional exchanges.

Yearly Lows

FX volumes have been pointed lower in August as markets were locked in wait-and-see mode thanks to the US Federal Reserve’s posturing about a September rate hike that never came to fruition. Coupled with traditionally lower volumes due to the summer months, EBS’ FX figures were understandably lower.

Finally, ICAP’s US Treasury activity during August 2016 was also on the decline, falling to $142.1 billion from $153.8 billion in July 2016, or -7.6% MoM. The decline was larger over a YoY basis, retreating off an August 2015 figure of $182.7 billion or -15.8% YoY.