Rising concern over the debt crises in both Europe and the United States have caused both the Euro and the US Dollar to plunge in recent months, and analysts are wary of predicting an upswing in the immediate future. In the southern hemisphere, however, currencies appear to be strengthening slowly and steadily, resulting not only in a relatively safe haven, but also in increased Forex trading activity in the region. A report released on July 25th indicates that Australian Forex trading as of April has risen 14% in US Dollar terms as compared with last year's activity.
Though reports of trade volumes may not be entirely accurate, as a result of inflation and the currency's recent appreciation. This caveat notwithstanding, additional semi-annual reports show that the Australian Dollar has grown its market share against its US counterpart from 46% to 49% in October.
Taking the Trend to Tokyo
Similar reports on trading in Tokyo reveal an 8% overall increase in April as compared to the previous year. Specifically, Spot currency trading volume rose 10.0%, while foreign currency swap trading volume rose 7.6%, said the committee of Tokyo market participants, which includes the Bank of Japan.
According to an article by NASDAQ.com, however, the volume of trading with customers fell 6.2%, however, partly as Japanese exporters grew less active in the foreign exchange forward and currency options markets than a year earlier due to the impact of the March 11 earthquake and tsunami, the data showed.
Analysts expect the market to remain volatile in the coming days as both Eurozone leaders and US politicians struggle to reign in their debt problems. But it would not be surprising if we see continued growth in both Australian Forex trading and Japanese trading as traders search for more stable currencies and trading options.