Retail traders take advantage of dollar's decline during 2008
The euro / U.S. dollar was the most traded currency pair during the first two quarters of 2008 globally, accounting for 36 per cent of all FX volumes executed by retail investors, according to dbFX.com, the online FX trading platform from Deutsche Bank.
The second most traded currency pair in the first six months of the year was the British pound / U.S. dollar. The pound strengthened against the dollar and accounted for a quarter of all trades during June 2008, compared to an average of 17 per cent throughout the first half of 2008. This is contrary to the beginning of 2008 when it accounted for just under 10 per cent of trading volumes. The greenback hit a low against the pound during the spring and again at the end of June when volumes of British pound / U.S. dollar accounted for 20 per cent and 25 per cent of trading on dbFX respectively as market confidence in the US economy slumped.
Trading of the dollar against the Japanese yen was the third most traded currency pair in 2008 to date and accounted for around 15 per cent of trading volumes. The dollar experienced record low levels against the yen during the first half of 2008, not seen since the mid-nineties, as it hovered around the Y100 on some trading days, while investors rushed to buy high yielding currencies.
Betsy Waters, Global Director of dbFX, said: “dbFX has continued to see significant growth in trading on its platform. As part of the fallout of the sub-prime crisis, markets have become more volatile leading to a thriving FX environment as investors take advantage of market conditions to hedge one currency against another.
“Market volatility provided renewed impetus for currency trading activity as retail investors sought out alternative investment options to counter the bleak equities market. The dbFX trading platform affords retail investors similar opportunities as institutional investors both in terms of market liquidity and industry leading research, allowing investors to maximise fluctuations in currencies in real-time to get the most out of their investment portfolio.”
“dbFX clients have changed their currency of choice for the ever popular carry trade. Previously clients traded the Japanese yen against high interest currency pairs such as the Australian and New Zealand dollar, and the British pound, although recently we’ve noticed clients have switched to trade the Swiss franc (CHF) against these higher interest rate currencies. The dbFX client volumes illustrate this, as volumes for currency pairs against the yen have dropped 28 per cent from Q4 2007 over Q2 2008, while volumes in CHF pairs rose 2 per cent during the same time period.”
dbFX’s trading platform provides easy to use functionality including trading from charts and access to Deutsche Bank market information that enable investors throughout over 70 countries worldwide to leverage market conditions in real-time at the touch of a button. dbFX has 34 currency pairs available to investors on its platform.
The platform can be accessed at: www.dbfx.com
For further information, please contact:
+44 207 269 7295
+44 207 269 7244
About Deutsche Bank
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