FX Trading Volumes Show Mixed Results Amid Dollar’s Worst Start in 50 Years ⋅ Crypto World Echo
After arecord-breaking April and a particularly weak May, June 2025 brought relativestabilization in terms of volumes across institutional foreign exchange (FX)markets.
However,geopolitical tensions, ongoing trade wars, and decisions made by Donald Trump,combined with the dollar experiencing its worst performance in 50 years,suggest that market calm remains elusive.
Let’s checkhow trading volumes changed month-over-month and year-over-year across majorplatforms, including Cboe FX, FXSpotStream, TFX, Euronext FX, and Fastmatch’s360T.
Subdued Volumes in theUnited States
Cboe FXvolumes declined slightly in June, dropping from May’s reported $1.06 trillionto $1.01 trillion. However, due to fewer trading days in the past month,average daily volumes (ADV) actually increased to $48.3 billion compared to$47.9 billion the month prior.
Whencompared to the same period last year, both metrics showed growth. Totalvolumes in May 2024 stood at just under $971 billion, with ADV at $47.5billion.
We observedanother month of significant volume weakening following the record-breakingvalues achieved in April, when Trump-induced volatilitydroveinstitutional-level trading activity in the currency markets to unprecedentedheights.
FXSpotStreamreported similar trends. After a sharp decline in May, June volumes remained atyear-to-date lows, recovering modestly from last month’s $98.7 billion ADV to$99.8 billion.
Even Steeper Declines inJapan
Thesituation in the Japanese market tells a more dramatic story. Depreciation wasdecidedly stronger, as evidenced by volume data from the Click 365 platformoperated by the Tokyo Stock Exchange. Total transaction volume reached 1.18contracts, falling 18% compared to May and nearly 50% compared to the sameperiod last year. The average daily number of traded contracts stood at 56,225.
USD/JPYremained the most popular trading pair, though it experienced a 31%month-over-month decline in turnover and an 18% year-over-year drop.
Weak and Mixed VolumesAcross the Old Continent
Europeanexchanges presented a mixed picture. Euronext FX total volume positioned itselfat nearly $609.5 billion in June, with average daily volume at $27.7 billion,again declining sharply compared to values reported in recent months. Mayrecorded $719.87 billion, while the record-breaking April reached $893.1billion.
Fastmatch’s360T platform, conversely, noted a rebound from May’s steep decline when totalvolumes dropped to $605.1 billion from $871 billion reported the month earlier.This time, the figure reached $711.7 billion. ADV grew from $27.5 billion to$33.9 billion in June.
Currently,with the dollar posting its worst year-start in over 50 years and its indextesting the lowest levels since 2022, we would typically expect renewedvolatility spikes rather than market quieting.
This article was written by Damian Chmiel at www.financemagnates.com.
