We’re still in the midst of reporting August FX trading volumes, however in a few weeks we should see a major improvement from the so-far-slow 2014 when September figures roll around.
As expected, yesterday’s surprise ECB rate cut caused not just a 1%+ drop in the Euro against major currencies, but also engendered a spike in trading volumes. KCG Hotspot, which now gives daily figures, reported its best-ever day since starting to report daily figures earlier this summer. Thursday saw more than $56 billion in FX transactions crossed at Hotspot, more than double the typical daily average:
We expect that yesterday was similarly a large-volume day across the FX trading universe – making it a great day for everyone except those who were unhedged and long the Euro.