More recently, the CLS Bank released figures show that daily volume of foreign trade reached USD5.12 billion in June 2011, breaking the previous record set in March 2010. This traffic is twenty p.c. over the same period last year.
So why the increase in foreign currency trading?
28% increase between 2007 and 2010 was partly responsible for the global financial crisis: the stock fell in 2008, the forex market is becoming increasingly popular. As currencies are always traded in pairs, always will move against each other, giving the opportunity for traders to profit at any time, the financial crisis or not.
As with the 2011 increase, it was attributed to the Greek crisis, which is close to default increased trading in the euro unstable. And, although the severity of the vote is passed, the 2nd rescue program is still going on. Set apart from Greece, members of the eurozone Portugal, Italy, Ireland and Spain also have high proportions of government debt, with the expectation that Italy may be the next to suffer after a spike in the Italian bond yields 8th July 2011.
Another reason for the record volume of foreign trade is a press conference held on 22nd Ben Bernanke June 2011, in which he admitted the weakness of the U.S. and announced that the Fed has cut down the middle of its 2011 GDP growth outlook to 2.8% range (January 3.7%), with the end of 2011 to increase his chances of unemployment and inflation rates. He also announced that a second round of quantitative easing would expire at the end of the month, and it was not likely to be after the 3rd st.
After the press conference was a rapid decline in the shares increase costs to align USD.
But in June the increase in forex trading is not a characteristic, such as the northern hemisphere during the summer months are sometimes slow trading period. It will be fascinating to see what September holds, because it is historically a time when market participants return from their summer holidays. And that is when the next tranche of aid will be paid to Greece. This means that even if the currency market slows over the next 2 months, it is likely to come back with a bang.
