Trading Currencies: It Isn't Over Until It's Over - FX Empire
Trading Currencies: It Isn't Over Until It's Over - FX Empire |
- Trading Currencies: It Isn't Over Until It's Over - FX Empire
- 10 biggest Forex trading markets in the world - ValueWalk
- FOREX-Dollar steadies, but more losses seen on post-election policy outlook - Reuters
| Trading Currencies: It Isn't Over Until It's Over - FX Empire Posted: 08 Nov 2020 12:33 AM PST  America has chosen Democrat Joe Biden as its 46th president of the United States. But it's clear that President Trump will fight it out to the very end with legal challenges and recount petitions. This is far from over and currency markets are reflecting this. Trends of Major Forex PairsHere are the ranges of the major pairs and the basket itself since the close of the polls on the East Coast to now. EUR/USDThe euro edges higher against the US dollar as the election results are awaited. As of the time of press, it hit the one-week high 1.18 threshold. USD/JPYUSD/JPY is traded with a negative bias amid a mildly softer tone surrounding the US dollar. Market's hope for a blue wave victory is weighing on the USD. GBP/USDAfter the BoE expanded its QE program by £150 billion and maintained cash rates at the same 0.1% level, GBP/USD jumped to near mid-1.3000s. AUD/USDThe Aussie pair continued to edge higher as the votes are counted. Analysts at UBS predicts that the Aussie pair is likely to surge towards 0.74 by Sep 2021. DXYIt is obvious that US dollar index is falling on the uncertainty that is coming from the elections. Its momentum remains weak near the 93.42 region. As expected, if Trump took Florida, which he did, FX markets would react strongly and would see a repeat of 2016 becoming fact. It certainly led the bookies to flip their betting markets as fast as they did in 2016 on Florida's declaration and that sent currencies with it. This will likely to continue in the interim. Election Results & BeyondGoing forward, now there are several factors to consider: What does the Senate look like? Currently it looks like the Republicans will hold the Senate and could hold up policy over the next 4 years. Tax and regulatory reform were pillars of Biden's campaign; this scenario might now be watered down with a Republican-held Senate. Other Factors Not To Be Left OutElections aside, there are still several important issues that traders should keep a close eye on in the near term:
This article is prepared by Lucia Han from Mitrade and is for reference only. We do not represent that the material provided here is accurate, current or complete. The article content neither takes into account your personal investment objects nor your financial situation, and therefore it should not be relied upon as such. You should seek for your own advice.  |
| 10 biggest Forex trading markets in the world - ValueWalk Posted: 06 Nov 2020 08:05 AM PST Foreign exchange or Forex is the biggest and most liquid market in the world. Yes, it is even bigger than the global stock markets. As per the 2019 Triennial Central Bank Survey of FX and OTC derivatives markets, the average daily volume in the forex market was $6.6 trillion. There are about 180 official currencies in the world, but the most popular among traders are the U.S. dollar, British pound, Japanese yen, and the euro. Similarly, there are many forex markets around the globe, but some are more popular than others. Detailed below are the ten biggest forex trading markets. Get The Full Seth Klarman Series in PDFGet the entire 10-part series on Seth Klarman in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.  Q3 2020 hedge fund letters, conferences and more Biggest forex trading markets
The UK has been ruling the forex market for quite a while now, and it is also among the most dynamic market in the world. It accounts for about 43% of all foreign exchange trading globally, as per the BIS data. In 2004, the UK accounted for 32% of all foreign exchange trading. In dollar terms, the region saw a trading volume (daily average) of $3,576 billion in 2019, compared to $835 billion in 2004.
Even though the USD is the most popular currency among traders, the U.S. is the second biggest forex trading market. The U.S. accounts for about 16.5% of all foreign exchange trading globally. The overall share of the U.S. in global forex trade has been on a decline. In 2004, the U.S. accounted for 19.1% of the global forex trade. In dollar terms, the U.S. witnessed a trading volume of $1,370 billion in 2019, compared to $499 billion in 2004, according to BIS data.
Singapore accounts for 7.6% of all foreign exchange trading, according to BIS data. In 2004, the country's share in the forex trading was 5.1%, while in 2016, it was 7.9%. In dollar terms, the country's daily trading volume is $633 billion, compared to $134 billion in 2004.
Hong Kong accounts for 7.6% of all foreign exchange trading. The territory has been increasing its forex trading share gradually over the years. In 2004, the country accounted for 4.1% of the forex trading globally, while in 2016 the share was 6.7%. In dollar terms, Hong Kong's trading volume was $632 billion in 2019, up from $106 billion in 2004.
Japan is the fifth-biggest forex trading market. The country's share of the forex market has been on a decline. A decade back, it was the third largest forex market with a total trading share of 8% (in 2004). In 2019, however, Japan accounted for just 4.5% of the forex trading market. In absolute terms, the country's daily trading volume was $376 billion in 2019, compared to $207 billion in 2004.
Switzerland has also not been able to hold onto its position that it enjoyed a decade back. It now accounts for 3.3% of the global forex trade, the same share it had in 2004. In 2007, however, the country was able to increase its share to 5.9%, but since then, Switzerland has seen a drop in its share. In dollar terms, Switzerland's daily trading volume was $276 billion in 2019, compared to $245 billion in 2007.
France is also among the countries that has seen its forex trading share drop in the last decade. In 2007, the country accounted for 3% of the forex trading globally, but now, its global share has dropped to 2%. In terms of daily volume, it was $127 billion in 2007, compared to $167 billion in 2019. France's daily forex trading volume was $190 billion in 2013, as per the BIS data.
China has seen phenomenal growth in the forex market in the past decade or so. In 2007, the country's share of the forex market was just 0.2%, but now, China accounts for 1.6% of the forex trading globally. In absolute terms, China's daily trading volume was just $9 billion in 2007, compared to $136 billion in 2019.
Germany has also been losing its share in the forex market. In 2004, the country accounted for 4.6% of the forex trading globally, but now, its share has dropped to 1.5%. In dollar terms, the country's daily trading volume was $120 billion in 2004, and in 2019, it was $124 billion.
The last in the list of the ten biggest forex trading markets is Australia. In 2007, Australia accounted for 4.1% of the forex trading globally, but now its share has dropped down drastically to just 1.4%. In dollar terms also, Australia has witnessed a drop in trading volume. The average daily trading volume was $176 billion in 2007, but in 2019, it dropped to $119 billion.  |
| FOREX-Dollar steadies, but more losses seen on post-election policy outlook - Reuters Posted: 05 Nov 2020 06:55 PM PST  * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E * Dollar falls broadly as yields fall, equities rally * Currencies price in low chance of big U.S. stimulus * Australian dollar falls after RBA statement By Stanley White TOKYO, Nov 6 (Reuters) - The dollar steadied against many currencies on Friday, but traders say more losses are likely as a contentious U.S. presidential election diminished hopes for large stimulus to support the economy any time soon. Investors are betting that Democrat Joe Biden will become the next president but Republicans will retain control of the Senate, which will make it difficult for the Democrats to pass the larger fiscal spending they have been pushing. Biden maintains an edge over President Donald Trump, but a few important states are still counting votes and Trump is mounting legal challenges to vote counts, so there is still a high degree of uncertainty. A large decline in long-term Treasury yields due to expectations for less fiscal spending, combined with a rally in equities and other risk assets, has placed the dollar under consistent selling pressure that is likely to continue. "There is a green light for the resumption of dollar selling, reflecting past declines in real interest rates," said Ray Attrill, head of foreign exchange strategy at National Australia Bank in Sydney. "There's an argument that the U.S. Federal Reserve will have to backstop risk assets. The pandemic is still trending in the wrong direction." The dollar traded at 103.61 yen in Asia on Friday, close to an eight-month low. Japanese Prime Minister Yoshihide Suga has vowed to work closely with overseas authorities to keep currency moves stable, because a strong yen is widely viewed as a threat to Japan's economy. Against the euro, the dollar traded at $1.1818 after falling 0.87% in the previous session. The British pound traded at $1.3128, holding onto a hefty 1.23% gain from Thursday. The dollar index against a basket of six major currencies stood at 92.668, close to a two-week low. For the week, the dollar index was down 1.5%, on course for its biggest drop in almost four months. Voting tallies from several U.S. states continued to trickle in during the Asian session, but currencies showed little reaction because the declaration of an outright winner could take several more days or even weeks, some traders said. Investors also await the release of U.S. non-farm payrolls later on Friday, which is forecast to show a slight slowdown in job creation. Worries about the U.S. economy are growing, which is a reason to expect declines in the dollar to continue into next year, some analysts say. The rise in new coronavirus cases to record levels in several states could also curb U.S. economic activity. The onshore yuan fell slightly to 6.6366 per dollar but still remained close to its more than two-year high reached on Thursday. Many investors expect a Biden administration will slightly scale back Trump's trade war with China, which should benefit the yuan. Elsewhere, the Australian dollar fell against the greenback in Asian trading after the country's central bank said it is prepared to expand bond purchases if needed to support the economy. The declines in the Aussie also dragged the New Zealand dollar lower. ======================================================== Currency bid prices at 11:27AM (0227 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.1818 $1.1828 -0.08% +5.42% +1.1848 +1.1796 Dollar/Yen 103.6100 103.5500 +0.06% -4.61% +103.7500 +103.4950 Euro/Yen 122.45 122.40 +0.04% +0.41% +122.6700 +122.3000 Dollar/Swiss 0.9040 0.9042 -0.01% -6.57% +0.9056 +0.9030 Sterling/Dollar 1.3128 1.3153 -0.16% -0.99% +1.3156 +1.3114 Dollar/Canadian 1.3075 1.3046 +0.18% +0.60% +1.3085 +1.3038 Aussie/Dollar 0.7262 0.7285 -0.30% +3.52% +0.7283 +0.7250 NZ 0.6778 0.6774 +0.07% +0.74% +0.6786 +0.6756 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Reporting by Stanley White; Editing by Sam Holmes and Himani Sarkar)  |
Crispin Odey, who is considered to be one of the best-known and most high profile hedge fund managers in the UK, announced earlier this week that he would step down from the role of co-chief executive at the hedge fund group he founded in 1991. Q3 2020 hedge fund letters, conferences and more Odey has | You are subscribed to email updates from "currency trading" - Google News. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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