FX Market Volumes in CLS Group Rose 1% on a Yearly Basis for August 2021

CLS Group, a major foreign exchange settlement provider, released its trading metrics for August 2021, noting a surge in the 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 market activity compared to last year’s same period. The report said it was up 1%, whose average daily traded volumes were $1.67 trillion, which is down 3.8% compared to July.

According to the FX settlement provider, FX Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term witnessed an increase of 4% compared to August 2020, accounting for $1.23 trillion. Also, spot trades declined -5%, while outright forwards were up 2% for the period. Regarding the spot markets activity, the report highlighted that monthly spot volumes for August were down -5% compared to last year.

Additionally, daily spot volumes’ metrics unveiled that the busiest day was August 31, when $577 billion was traded. EUR/USD had the most significant share of the spot volumes activity during that day, having moved around $164 billion, while USD/JPY traded $73 billion, followed by USD/CAD and GBP/USD, which had a volume of $66 billion and $59 billion, respectively.

Busiest Hour in Trading Activity

Among the Nordic currency pairs, EUR/SEK had the most significant spot volumes activity on August 31, where it moved $9 billion, followed by EUR/NOK, which traded the same amount but on August 19. Moreover, CLS Group said that the busiest hour was at 16:00 London time on August 1, when around $124 billion was traded, being the most active hour for EUR/USD, GBP/USD, USD/CHF, EUR/GBP, USD/HKD, USD/SEK, EUR/SEK, GBP/JPY and GBP/CHF.

Finance Magnates reported CLS Group’s metrics for July, noting a decline in the average daily traded volume in the Forex (FX) market, which was $1.74 million. This is down 8.6% compared to the previous month. However, on a year-on-year basis, volumes were up 5%. In addition, to the FX swaps, the report highlighted that figures were up 4% on a year-on-year reading, adding $1.24 trillion to the total volume.