Demand for Foreign Exchange Trading and Hedging is Beginning to Recover

Forex trading volume has finally recovered after the wave of deleveraging caused the market to contract back in April 2009. Earlier this week central banks from around the world released their semi-annual foreign exchange surveys and according to the reports, the average daily trading volume between April and October of 2009 increased significantly.

In London, total daily foreign exchange volume rose 14 percent to $1,549 billion and in NY the average volume increased 28 percent to $675 billion.

These are still below 2008 levels but indicate that demand for foreign exchange trading and hedging is beginning to recover.

The EUR/USD remains the most actively traded currency pair by far followed by the GBP/USD and USD/JPY.

London (link to report)

  • Britain is the world’s biggest FX trading hub with over a third of global turnover.
  • Average daily turnover in traditional forex products rose 13% to $1,430B, up 13% from Oct 2009
  • Total forex trading volume rose 14% to $1,549B
  • The most heavily traded currency pair was euro/dollar, which accounted for 32.6% of total turnover.

UK forex trading volume

UK forex trading volume breakdown

New York (link to report)

Daily FX market turnover rose 28.1% to $675B

NY forex trading volume

Tokyo – Data not updated

Singapore (link to report)

Average daily reported ‘traditional’ foreign exchange turnover was US$231bn, a 13% increase compared to April 2009

Singapore forex trading volume

Canada (link to report)

The monthly turnover in October of traditional foreign exchange products (defined as spot transactions, outright forwards and foreign exchange swaps) totaled US$ 1.26 trillion. On an average daily basis, total turnover increased by 6.2% from US$ 56.4 billion in April 2009 to US$ 59.9 billion in October.

About Kathy Lien 235 Articles

Kathy Lien is an Internationally Published Author and Chief Strategist of, one of the world’s most popular online websites for currency research. Her trading books include the highly acclaimed, Day Trading the Currency Market: Technical and Fundamental Strategies to Profit form Market Swings (2005, Wiley); High Probability Trading Setups for the Currency Market E-Book (2006, Investopedia); and Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game (2007, Wiley). As Chief Currency Strategist at FXCM, Kathy is responsible for providing research and analysis for DailyFX, the research arm of FXCM. She also co-edits the BK Forex Advisor, an Premium Service with Boris Schlossberg – one of the few investment advisory letters focusing strictly on the 2 Trillion/day FX market.

Kathy is also one of the authors of Investopedia’s Forex Education section and has written for, the Asia Times Online, Stocks & Commodities Magazine, MarketWatch, ActiveTrader Magazine, Currency Trader, Futures Magazine and SFO. She is frequently quoted by Bloomberg, Reuters, the Wall street Journal, and the International Herald Tribune and has appeared on CNN, CNBC, CBS and Bloomberg Radio. She has also hosted trader chats on EliteTrader, eSignal and FXStreet, sharing her expertise in both technical and fundamental analysis.

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