Saxo Bank sees a 12% drop in forex demand in December 2022
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With the start of the new year, companies have started publishing their reports involving performance in 2022. Given the state of the markets and the global financial industry, the majority of firms are seeing significant drops in numerous areas.
Saxo Bank, for example, just published its FX trading metrics for December 2022, sharing a significant decline in trading demand. While the drop was noticeable across all asset classes, the company saw a particular drop in forex demand.
Saxo Bank’s report
According to Saxo Bank, the overall monthly trading volume came in with a 9.3% month-over-month, totaling at $415.7 billion. As for forex itself, the demand decreased quite significantly, sinking to $121.3 billion after previously seeing $138 billion in November. The bank measured a decline of 12.1% on a monthly basis.
The same situation was recorded when it comes to the average daily trading volume involving FX instruments, which sank by 8% to $5.5 billion in December.
The interesting part of the report is the fact that these figures represent an increase when it comes to year-over-year comparison. In fact, the December figures were reported to be 26.7% higher compared to December 2021, when the company concluded the month with $95.7 billion.
This it interesting, as most other firms saw an even greater YoY decline than their MoM decline. Saxo Bank, on the other hand, sees a YoY increase. When it comes to MoM performance, Saxo is seeing mostly drops in figures. Demand for equities instruments is no exception, and the company ended December with a total equities monthly volume of $255.7 billion, which is a drop from $278 billion seen in November 2022. However, it represents an increase from $233 billion recorded in December 2021.
All trading instruments saw a decline MoM
The daily average regarding equities instruments also saw a monthly decline, from $12.7 billion in November to $11.6 billion in December. But, compared to December 2021, when it was at $10.1 billion, this is still a considerable increase of $1.5 billion.
Apart from the mentioned instruments, Saxo also offers fixed-income instruments and various commodities that traders can choose from. The firm shared figures involving the commodities also, stating that in December, the monthly volume reached $30.4 billion. Of course, this represents a drop from November’s $32.1 billion. Fixed income did not perform any better, dipping from November’s $9.4 billion to $7.9 billion in December.
Another notable move by Saxo that took place in December was its decision to terminate its deal with a blank-check firm. As such, Saxo gave up on going public, at least for the time being.
