Institutional FX Volumes Show Mixed Results in August

Institutional FX Volumes in August 2025 delivered mixed results as the US dollar reversed its July gains and lost ground across global markets. The greenback fell by 2.2% during the month, a sharp turnaround from the 3.4% gain recorded in July, pushing the DXY index closer to multi-year lows. This renewed weakness followed comments from Federal Reserve Chair Jerome Powell at Jackson Hole, which fueled speculation about potential September rate cuts. 

Consequently, institutional FX trading venues worldwide recorded an average month-to-month decline of nearly 14%. Despite the turbulence, Cboe FX maintained resilience, posting total volumes of $960.1 billion in August and an average daily volume of $45.7 billion across 21 trading days.

Although volumes slipped below the one trillion-dollar threshold for the first time since March 2025, the platform’s ADV showed slight growth compared to July’s $45.59 billion, thanks to fewer trading days in August. 

Institutional FX Volumes Show Mixed Results in August

Meanwhile, Japan’s Click 365 continued to struggle, reporting volumes of 1.19 million contracts with an ADV of 56,680 contracts. This represented a 16% decline from July and a staggering 59% drop year-over-year, underlining Japan’s persistent institutional weakness in the FX market. In Europe, results were more balanced as platforms showed relative resilience. Deutsche Börse’s 360T posted volumes of $685.6 billion with an ADV of $32.6 billion, reflecting a moderate decline amid softer institutional appetite. 

On the other hand, Euronext FX volumes reached $493.1 billion, with an ADV of $23.5 billion, maintaining stable traction despite the overall slowdown. The euro’s 12% year-to-date gain against the dollar supported continued interest from European institutions seeking arbitrage and hedging opportunities, although volumes remained modest compared to last year. The dollar’s movements throughout August highlighted the fragile balance between Federal Reserve signals and US trade policies. 

After strengthening early in the month, the dollar tumbled sharply following Powell’s remarks about labor market weakness potentially outweighing inflation risks, before rebounding slightly in late August. Looking ahead, uncertainty continues to shape market expectations. With the DXY already down about 10% year-to-date, institutional platforms are bracing for further volatility. September volumes will likely hinge on Federal Reserve policy direction and whether the dollar’s weakness proves temporary or part of a deeper structural decline that has defined much of 2025.

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