Foreign exchange traders are braced for an unusually volatile end to the year, after a sharp fall-off in volumes signalled that many investors have closed their books early.
Trading floors at investment banks are reporting a drop in demand from major clients – many of which have lost money trading the euro, due to its unexpected strength in the face of deepening debt woes across the region.
Volumes for some currency pairs were up to 30 per cent lower in November than in the previous two months, according to estimates by Citi for the whole market, using data from the EBS trading platform.
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