Institutional FX Trading Stabilizes in July 2025 Amid Dollar’s Historic Drop

Institutional foreign exchange trading volumes showed signs of stabilization in July 2025, with most major platforms reporting slight increases compared to the subdued activity in June. Notably, the US dollar experienced its lowest levels since 2022 during this period. After six consecutive months of decline, the dollar saw its first positive month, providing some relief to currency markets that had faced persistent weakness earlier in the year. Cboe FX volumes rose to $1.05 trillion in July from $1.01 trillion in June, mainly due to an increase in trading days—23 days versus 21 in June—though average daily volumes decreased to $45.6 billion from $48.3 billion. Year-over-year comparison shows July 2024 volumes at $1 trillion with an average daily volume of $44.5 billion, indicating current activity levels are consistent with historical patterns despite ongoing dollar weakness. FXSpotStream reported encouraging figures, with total average daily volumes reaching $104.2 billion, up from $99.8 billion in June. Its spot trading average daily volume was $68.4 billion, with other products adding $36 billion. European exchanges demonstrated steady performance. Euronext FX volumes declin...