Trading volumes in October were down slightly from September and profits remained tepid as many of the major pairs remained somewhat range bound during the month. Yen crosses drove profitability as the currency sold off throughout the month. Gold once again was the highest volume product for most brokers but was a drag on profitability with many brokers registering an overall loss on trading in the metal.
*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
The International Monetary Fund downgraded its 2021 forecast for Asian economic growth from 7.6% to 6.5% as a result of recent Covid-19 spikes in parts of the region. In spite of the downgrade, Asia is still expected to remain the fastest growing region of the world in 2021 led by strong projected growth figures in China and India.
A number of European nations are considering or have already begun to reimplement Covid related restrictions as cases on the continent have continued to rise in recent weeks. The World Health Organization recently warned that if the region remains on its current trajectory, it could see an additional 500,000 Covid related deaths by early 2022. Euro zone business growth fell to a six-month low in October primarily as a result of supply chain issues.
The United States Congress passed a short-term debt limit increase in early October and now has until early December before the issue needs to be addressed again. Congress has to this point been unable to reach agreement on either of President Biden’s primary legislative goals: the infrastructure bill and Build Back Better legislation. If not passed in the near future, deliberation of those items may need to be put on hold so the debt limit can once again be addressed.