June 18, 2024

United Kingdom leads the global forex industry, generating 43.1%


While London has emerged as the leader in Forex, analysis shows that the turnover of England’s forex industry touched a colossal USD 3,276 billion as of April 2022 recording a growth of 19% with a turnover of USD 2,757 in October 2021 and again a substantial increase of 11% from April 2021. Getting into the analysis comprehensively, the volume of FX swaps soared by 18% since October 2021 registering USD 1,689 billion. NDFs (Non-deliverable forward) touched USD 136 billion with a growth of 7% while outright forwards rose to USD 371 billion with an increase of 14% as analysed from October 2021 to April 2022. Furthermore, spot turnover witnessed a rise of 21% totaling USD 884 billion while currency swaps shrunk by 7% registering USD 26 billion.

Euro – USD is reported to be the most widely traded currency in London, as seen in the average daily business of USD 952 billion, resulting in the growth of 24% since October 2021. GBP – USD secured its position to be the second most traded currency pair in London with an average daily business of USD 432 billion which didn’t see much growth since October 2021 but witnessed a 5% growth since April 2021.

GBP saw a decline in the exchange rates this year taking traders by surprise. It was USD 1.35 for 1 GBP a year ago, which fell to USD 1.04, although it shot back to USD 1.12. Reportedly, US shares got around 17% more expensive in October 2022 than the time in October 2021 attributing to the fall of pounds. As per the reports, pounds have suffered the worst in the last 10 years.On the 23rd of September, Bank of England (BOE) announced a GBP 45 billion tax cut that resulted in a hurried sale on bond markets. Bank of England (BoE) is expected to introduce strategies and measures to harmonize the financial market, a news published in October 2022 reported.

Connecting with the Best Assets

Australia-based Axi, one of the leading forex and CFD trading companies in England has been known for its sophisticated trading services in about 100 countries with an estimated 42,000 clients. It is reported that in 2021, Axi was involved in a trade magnitude of a massive USD 2.4 trillion. Backed by one of its most valuable assets, Axi’s client servicing team aids the traders in every action of the exchange process. Furthermore, once the client is engaged with Axi, a relationship manager is introduced to assist the client with all the necessary resources and make them familiar with the tools involved in the business.

Axi has been constantly lending its ears to traders to further improve its services. As reported in September 2022, Axi rebuilt its Introducing Broker (IB) program bringing more flexibility to the structure for enhancing its productivity in the client referral business. Precise details on rewards as per the number of referrals produced have been established in Axi’s newly improved (Introducing broker) IB program.

A comprehensive understanding for beginners in the most popular MT4 (MetaTrader) program, Axi also offers advanced tools such as Autocharist where the software makes a scan in the market and brings in opportunities based on market movements. PsyQuation acts as an instructor along the way by spotting potential mistakes & shows analysis of trades, and MT4 NexGen gives access to plugins and aids the traders with sentiment trading, management tools, & enhanced ordering.

In view of its unique and efficient trading services with a special mention in its offerings in the versatile Meta Trader 4 (MT4) program, Axi has won 2 awards at International Business Magazine, a Dubai-based global publishing house. The awards conferred are ‘Most Innovative Trading Technology Platform United Kingdom 2022’, ‘Best MT4 Provider United Kingdom 2022’. With robust data security measures, round-the-clock multi-lingual support, personalized accounts and low trading costs, Axi is a broker, traders need to meet.

Weathering the Storm of Inflation

A few aspects that influence the GBP are monetary policy, consumer confidence & sentiment, inflation, the balance of payment and economic growth. Monetary policy by the Bank of England (BOE) aids the bank to tackle inflation when pounds gets a bit shaky. Confidence & sentiment is crucial because traders would want to know if the majority of them are positive about the economy or the other way around. GDP (Gross domestic product) is another solid aspect that decides the currency’s worth. Since GDP is a quarterly report, a large number of traders rely on other means of analysis such as manufacturing PMI (Purchasing Managers’s Index), Services PMI and retail sales, which is most preferred of all. Balance of payments shows the data of the nation’s accounts of purchases and selling with other countries. A surplus is healthy for the currency since it’s more of getting credit while a deficit is bad for the currency because money flows out. Current account report is published quarterly, although the trade balance report comes out every month.

2022 is not the kind of year UK expected as GBP has been pretty rough this year and UK’s economy is suffering through an inflationary period. GBP came down to almost 20% to USD since the start of the year. The mountain got a bit steeper for UK, and the government plans on rising energy prices and announcing tax cuts to stabilize the economy.

Blog By Harish Rajulu



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