Institutional Spot FX Volumes for January 2024 Tell a Tale of Two Continents

situation in Europe shows positive signs, with mixed outcomes in North America
and a weaker performance in Asia. That's the fastest way to summarize the January
results for spot foreign exchange (FX) volumes among institutional players.
Despite December being a shorter trading month due to the holiday season, which
usually results in quieter trading, we observed mixed results entering the new
year when comparing month-to-month.</p><p>Spot FX Volumes at Cboe FX
Markets Show Mixed Results</p><p>Cboe FX
Markets data reveals that January ended with $960 billion in trading volume,
<a href="" target="_blank" rel="follow">marking an increase from December's $890 billion</a>. However, it's important to
note the difference in the total number of trading days. While December had 20
trading days due to the holiday break, January saw an increase back to 22
trading days, similar to November and October. </p><p>Consequently,
the average daily volumes (ADV) were lower at $43.6 billion, slightly down from
December's $44 billion. For Cboe, this represents another month of declines,
<a href="" target="_blank" rel="follow">following November's total trading volume exceeding $1 trillion</a>, with an ADV of
$46 billion. </p><p>Cboe FX
Markets' consolidated quarterly data indicates a total trade volume of $2.5
trillion over the three months from October to December, with an average daily
volume of $39.8 billion.</p><p>Europe's Situation: 360T
and Euronext FX</p><p>Euronext FX
reported a total volume of $576 billion for the month, showing an increase from
December. This growth was additionally reflected in the ADV, which modestly increased
from $24.5 billion to $25 billion. </p><p>Deutsche
Börse's 360T platform reported an ADV increase from $27.7 billion to $29
billion, with a total trading volume of $576 billion compared to the previous
month's figures. </p><p>Therefore,
the spot FX volumes for major institutions in Europe were more favorable than
those in America, while Asia continued to report negative results for another
consecutive month.</p><p>Click
365 Experiences Significant Declines</p><p>Click 365,
the FX platform of the Tokyo Stock <a href="">Exchange</a>, reported a decrease of 12.5% in
trading volumes <a href="" target="_blank" rel="follow">compared to December</a>, dropping to 2,052,657 contracts. The
annual decline was even more pronounced at 23%. The ADV fell from the previous
month's 111,661 to 93,303. </p><p>The most
significant nominal decreases were observed in contracts related to the USD/JPY
currency pair where the trading volume was 852,012, falling 8.5%. On an
annual basis, the depreciation nearly reached 40%.</p>

This article was written by Damian Chmiel at

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