The Swiss National Bank’s FX reserves increased in July, according to data released on Thursday. The central bank disclosed that it had 453.391 billion Swiss francs (US$499.55 billion) in FX currency as of July 31, up from 449.602 billion a month earlier, which was revised upwards from the previous estimate of 449.553 billion as per International Monetary Fund standards.
The SNB imposed curbs on the surging franc in September 2011 in order to help combat the treat of recession and deflation. It also massively intervened in 2012 at the height of the euro area crisis, causing the FX reserves to swell, reported Reuters.
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In a separate report, CLS Group announced that its average daily volumes in the month of July 2014 fell 9.8 percent to 926,174, down from 1,027,055 a month earlier. The figure represented a decline of 20.2 percent from July 2013, when it recorded ADV of 1,160,857.
The average daily value of matched orders sent to CLS Group stood at $5.471 trillion in July 2014, a decline of 13.7 percent month-on-month from June when it posted $5.46 trillion. The figures rose 0.2 percent from July 2013 volumes of $4.7 trillion. CLS Group’s metrics aren’t surprising given that most FX firms have been struggling to post strong results in a weak trading environment characterized by low volatility.
However, a director of Brazil’s central bank Carlos Hamilton Araujo said that global FX markets will experience new cycles of volatility in the future. Araujo, who is one of the 8 members of the bank’s board, was addressing the press on Thursday after releasing the country’s regional economic performance. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Yashu Gola at yashu@forexminute.com
