United States – OctaFX explains how Forex is on top of a worldwide trend this year. On the other hand, Euronext FX dropped its volume by 7% in Q3 of this year.
According to OctaFX, the trend developed due to many factors that influenced the interest of traders in Foreign Exchange or Forex. These factors include the COVID-19 pandemic, the world economy, and geopolitics, creating uncertainty in the funding markets. The war in Ukraine also impacted the economy of the European countries, making the EU currency weak. At the same time, the United States or the US dollar had the chance to get closer to full equivalence, which was not possible since 2002.
The American currency had a strong performance in the Forex market, which caught the attention of retail as it looked for chances to take part. Other assets, like real estate and stocks, weakened when Forex earned traction. It’s because of the soaring insecurity and instability in the markets.
Forex had exceptional types of investments. Gold is a significant asset that also serves as an investment. It’s an exceptional long-term fence against inflation and has a strong record. However, this asset’s physicality is the downside since it needs to be in a strong and safe place.
Another type that traders find more interesting these days are cryptocurrencies. Even though digital assets have ongoing downtrends, some altcoins still manage to perform well and convince governments and funding institutions to invest. Crypto trading has the same security measures as forex trading. However, high risks are inevitable when it comes to digital assets.
Cash savings and savings account also contribute to the economic stability of a country. However, it doesn’t have a big impact when inflation is there.
Lastly, the stocks contribute, like any other type of Forex investment. There are advantages when you’re in a bull market. You earn more when you own more stocks. However, the pandemic affected the stock market’s performance, leading it to a steep decline, like Euronext FX.
Euronext FX’s volume dropped by 7%, which amounted to $1.4 trillion, while the average daily volume (ADV) dropped by 8%, amounting to $21.74 billion from $23.64 billion. These figures came from Euronext, from the monthly volumes of September 2022.
On the bright side, the month-over-month or MoM’s total volume boosted by 17.8%, amounting to $33.billion. Regardless of the seven-percent drop, the ADV of Forex trading already improved, from $1.97 billion to $24.2 billion. The year-to-date (YTD) also increased the volume by 22.2%, which amounted to $4.5 trillion.