FP Markets records strong FX trading volume amidst volatility

19 MAY 2016: SYDNEY – Australian CFD and FX provider FP Markets has recorded strong FX trading volume in the midst of volatile market last month.

“Our total volume of FX trades was up 6% month-on-month,” said Daniel Bent, Head of FX at FP Markets.

“The Aussie dollar stood its ground between the .7500 - .7800 cents in April and we saw some healthy flows of trade on the Aussie on the back of its strength last month,” Bent added.

“Aside from the Aussie dollar, there were also strong trading on the EUR/USD, GBP/USD and USD/JPY, which represent our top traded currency pairs” Bent added.

The growth in FX trading volume came on the back of uncertainty in commodity markets, particularly in oil and iron ore prices. The fluctuation in oil price was a staple market news as oil producing countries failed to agree on production level cuts.

As a commodity bloc currency, the Aussie’s moves are affected by fluctuation in oil and other commodity prices.

A strong US dollar also affected the Aussie dollar’s move in April as some US economic data provided some temporary push for the greenback last month.

The Aussie dollar saw some massive falls at the start of May on the back of the Reserve Bank of Australia’s (RBA) decision to cut interest rate. And with global central bankers scrambling to support their own respective currencies as well as trying to encourage growth in their countries, volatility in the FX market is expected to continue.

With the potential exit of the UK from the Eurozone, the GBP is expected to offer volatility trades against the USD and AUD.

“We could still expect some volatility in the coming months due to a number of factors including commodity prices and monetary policy adjustments globally,” Bent said.

 

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For more information or additional details, please contact:

Daniel Bent

Head of FX

FP Markets

Tel: +61 2 8252 6800

Email: d.bent@fpmarkets.com.au