TFX reports show a 25% decrease on MoM FX trade volumes

The Tokyo Financial Exchange has reported its trading volumes during the month of June and it’s definitely not painting a positive picture.

The overall trading volume fell considerably compared to May, which was a slight positive adjustment to an extremely weak month of April.

When compared to other months in 2019, June does not seem as bad, but looking at the yearly indicators we see a massive difference between the volumes, paining 2019 as a serious downtrend in the volumes.

The numbers in detail

Taking a look at just the foreign exchange daily futures contracts we already see a massive disparity between June and May.

June managed to reach around 1.65 million contracts, totaling around 82,000 per day, while May had a little less than 2.2 million, totaling around 110,000 contracts per day.

As we can see there’s a 25% drop between the months, indicating a large shift in the market sentiment for either long-term positions or complete ignorance of the market.

The only winner is EUR/USD

The only pair that was able to see at least some growth on the TFX was the EUR/USD, with around 35,000 contracts, indicating a better MoM growth than any other pair.

The unfortunate downtick in trading volumes paints a bearish picture for the future on the TFX, but in all honesty, it is an indication that the bulls may be gearing up for a major market entrance.

It’s unclear what will happen in July, but it’s pretty hard to score lower number than in June, in the wake of large market movers such as the G20 Summit, Trump’s DMZ visit and various other political developments in the world.