Trading is getting interesting in Japan and watchers are noticing every move. The Tokyo Financial Exchange (TFX) released information relating to its volumes for November. The Japanese stock exchange had a report that reflects nothing but weakness as far as the foreign exchange niche is concerned.
When an overview is taken of the entire Japanese exchange, the trend is very clear. The total trading volume for all the TFX products summed up at 2,201,080 contracts. The average daily trading volume comes up to 105,020 contracts. That can sound like a lot until a comparison is done with the records. When the value is compared with the one of the month before, the plunge of almost a quarter is seen. The figure for November is even more depressing as it has plunged by 28.3% on an annual basis.
FX Trading Slumps on the Japanese Exchange
In observing the sum of the trading volume of forex daily futures contracts, the image does not look enchanting or encouraging. For example, what was recorded for all of November was just 1,451,538 contracts and that is the total of what was traded. When a quick calculation is done, that comes up to a daily trading volume of 69,121 contracts.
When it comes to growth, the trading volume for foreign exchange daily futures in the month of November plunged. The plunge is also visible on a monthly and yearly basis upon closer observation. As a matter of fact, the plunge was as much as 29% and 43.6% when compared with the monthly and yearly records respectively.
When it comes to the individual currency pairs, another interesting trend is also noted. The trading of the British pound/United States dollar plunged by 74.4% and this is when there is a comparison with the month before. A total of 22,825 contracts went on trading in November. That comes to a daily average volume of a little over 1,000.
But on the other one is the record pair that has shown the most impressive monthly growth in November. This currency pair being discussed is the New Zealand dollar/Japanese yen currency pair. It translates to an increase of 36.9% from October. When compared on an annual basis, the currency pair with the highest improvement actually is the Mexican peso/Japanese yen.
When analyzing the Euroyen futures on a three-month basis, the picture is a lot more encouraging for the exchange. There is a very good reason for this and it was because of what happened in November. For this month, the trading volume was 86,459 contracts which translates to an average daily volume of 4,323 contracts.
This comes to a rise of 88.9% and 32.6% when compared using a monthly and yearly comparison respectively. There are some currency pairs that are performing really well and there are some other currency pairs that are not too impressive. On the whole, there is always room for improvement.