In Line with International pattern of decreasing trading volume and volatility
The Financial Futures Association of Japan (FFAJ) has launched its regular monthly overall retail trading volumes report for the month of June. The figures reveal a decrease of 2.4 percent month-on-month. The over the counter (OTC) FX Margin Trading report is a publication that is reporting on a regular monthly basis the overall variety of retail FX trading volumes from the Japanese market.
The research study includes information from 54 certified retail FX brokers that are running in Japan. With the exception of February, which saw a big regular monthly boost in trading volumes, the remainder of the months this year have been unfavorable, revealing a decreasing to flat pattern in trading volumes.
The volume of employment opportunities has likewise revealed a small reduction which might be in line with the worldwide pattern of low volatility specifically in the dollar associated sets as all the attention is concentrated on the pound and the euro over the last couple of months.
The occurring low volatility throughout the market has been especially hard striking in Japan, as the most active set for traders has been restricted within a trading variety. Generally varying markets present lower chances for traders and for this reason provide lower trading volumes.
The UK elections and the possibility of QE tapering from the ECB have guaranteed a few of the focus is set onto the European area, as far as volatility is worried.
What must motivate the traders and brokers alike is that the trading volume is now near the perpetuity lows. Durations of low volatility are generally followed by duration of high volatility. Possible triggers consist of continuous unpredictability from the Trump administration’s legal push in Congress and the upcoming loosen up of the Federal Reserve’s balance sheet.