NEX Markets EBS Trading Volumes Rebound from Slowest Month in 2017

Friday, 02/06/2017 | 12:40 GMT by Victor Golovtchenko
  • May trading volumes picked up as FX volatility was slowly reignited.
NEX Markets EBS Trading Volumes Rebound from Slowest Month in 2017
NEX

NEX Markets has just reported the latest trading volumes across the company’s electronic trading platforms. The foreign Exchange product EBS registered a positive month in May after marking the slowest month of 2017 in April.

The company reports that trading volumes transacted via EBS rose 7 percent when compared to April 2017, to $81.3 billion daily. The number is also higher by 12 percent when compared to a year ago.

Trading on the US Treasury market rose 2 percent when compared to April and 9 percent when compared to May 2016 for a total of $170 billion daily. US repos also ticked higher by 2 percent year-on-year and month-on-month for a total of $216.5 billion daily.

The European repo market spiked significantly higher when compared to last year - the total average delay trade volume reached $226.9 billion. The number is higher by 34 percent year-on-year and 4 percent month-on-month.

Market Volatility has rebounded somewhat in May, driven by substantial political jitters in Europe and the US.

June appears to be starting on a moderate note, but key risk events, such as the UK election, could tilt the scales. Currently the FX market is pricing in some chance of a major shakeup of the British government, with the majority of the Conservative party being questioned in some recent polls.

Another key factor for volatility this month is the Federal Reserve’s meeting on the 13th and 14th of June. The Federal Open Market Committee is expected to raise rates by 25 basis points. The hike is largely priced into the market. Key dials about the rollback of the Federal Reserve’s balance sheet will be the main driver for the market reaction to the event.

NEX Markets has just reported the latest trading volumes across the company’s electronic trading platforms. The foreign Exchange product EBS registered a positive month in May after marking the slowest month of 2017 in April.

The company reports that trading volumes transacted via EBS rose 7 percent when compared to April 2017, to $81.3 billion daily. The number is also higher by 12 percent when compared to a year ago.

Trading on the US Treasury market rose 2 percent when compared to April and 9 percent when compared to May 2016 for a total of $170 billion daily. US repos also ticked higher by 2 percent year-on-year and month-on-month for a total of $216.5 billion daily.

The European repo market spiked significantly higher when compared to last year - the total average delay trade volume reached $226.9 billion. The number is higher by 34 percent year-on-year and 4 percent month-on-month.

Market Volatility has rebounded somewhat in May, driven by substantial political jitters in Europe and the US.

June appears to be starting on a moderate note, but key risk events, such as the UK election, could tilt the scales. Currently the FX market is pricing in some chance of a major shakeup of the British government, with the majority of the Conservative party being questioned in some recent polls.

Another key factor for volatility this month is the Federal Reserve’s meeting on the 13th and 14th of June. The Federal Open Market Committee is expected to raise rates by 25 basis points. The hike is largely priced into the market. Key dials about the rollback of the Federal Reserve’s balance sheet will be the main driver for the market reaction to the event.

About the Author: Victor Golovtchenko
Victor Golovtchenko
  • 3424 Articles
  • 27 Followers
About the Author: Victor Golovtchenko
Victor Golovtchenko: Key voice in crypto and FX, providing cutting-edge market analysis.
  • 3424 Articles
  • 27 Followers

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