FX volumes steady
It’s starting to look rosier in the FX garden once again.
Volumes from both the CME and Icap suggest that the brief fall in turnover may have ended. The CME reports that its turnover averaged 544,000 contracts (notional $68 billion) a day in May, an increase of 21% on April. Icap says its average daily volume on EBS came in at $134.3 billion, up from $121.6 billion in April.
In the meantime, Reuters says it saw a surge in turnover on Wednesday after it broke the story that China, Japan, South Korea and India would most likely shrug off any downgrades in US credit ratings and continue to buy Treasuries. The company says that this stimulated turnover of $130 billion on its matching system. This was followed up yesterday by what is a record day for the year when $134 billion worth of business was conducted.