In spite of tepid volumes in July (which are often seen mid-summer), revenues returned to and in some cases exceeded 2021 average monthly levels. Profits were front loaded in the first two weeks of the month on the back of a drop in gold and a broader USD strength that saw EURUSD briefly go past parity. The second half of the month was largely flat for brokers with USD reversing and gold rallying back.

*Average Daily Volume represents the daily volume from ISRA customers for each day of the month divided by the average daily volume for the month. Each day is represented as a percent of the average.

** Average Daily B Book PnL represents the daily B Book PnL from ISRA customers for each day of the month divided by the average daily B Book PnL for the month. Each day is represented as a percent of the average.

Source: IS Risk Analytics Database. Past Performance is not necessarily indicative of future results

ASIA

Tensions between the United States and China escalated in late July when news leaked that Speaker of the House Nancy Pelosi planned to visit Taiwan during her trip to Asia. Prior to the trip China warned there would be retaliation if the Speaker went through with the visit, which she did. As a result, China recently announced countermeasures including cancellation of communication between US and Chinese defense leaders, suspension of anti-drug cooperation with the US, and suspension of climate change talks.

EUROPE

In contrast to the United States, the European Union’s GDP unexpectedly rose in the second quarter, but troubles for the region’s economy loom on the horizon. The EU is facing an energy crisis as a result of Russia significantly reducing its exports of natural gas to the region. Though officials in Moscow are asserting that the reductions are a result of maintenance issues with its pipelines, EU politicians are claiming that the supply cuts are a politically motivated effort to punish countries that are sanctioning Russia over its invasion of Ukraine.

AMERICAS

Economic discussions in the United States centered around the definition of “recession” and whether the country is currently in one. Second quarter GDP fell 0.9% following a decline of 1.6% in the first quarter. While consecutive quarters of GDP contraction meets the commonly used definition of a recession, President Biden and his economic advisors have pushed back citing other economic data including strong employment figures in order to assert that the US is not in fact in recession.

 

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