Currency trading volumes hit two-year low on EBS platform

 This report was created by OXShare team

CME Group’s spot platform, EBS, experienced a notable decline in its average daily currency trading volumes, reaching its lowest point in two years last month. The volumes decreased to $50.8 billion, down from around $75 billion at the beginning of 2021. This decrease in trading activity occurred while the foreign exchange (FX) market remained stable, as suggested by the Bloomberg Dollar Index.

The FX market remained stable in October as shown by the Bloomberg Dollar Index, which stayed within a narrow 2% range. This stability can be mainly credited to the Federal Reserve’s decision to keep interest rates steady after a period of strict monetary tightening.

Furthermore, there was a substantial decline in a measure that monitors the implied volatility of major currency pairs over a one-month period. This index dropped to its lowest level since February 2022, providing further evidence of the stability observed in the foreign exchange market.

The decrease in trading activity on the EBS platform and the decrease in volatility in significant currency pairs highlight the current steadiness in international currency markets. This occurs as central banks worldwide deal with their monetary strategies while there are still uncertainties in the economy.