Fri, Dec 13, 2019 - 11:36 AM<\/p>\n
DESPITE subdued global currency markets, trading activity in foreign exchange (FX) futures on the Singapore Exchange (SGX) grew to US$110 billion in November, up 12.5 per cent month on month and 9 per cent year on year.<\/p>\n
Nearly 1.88 million FX contracts changed hands on the Singapore bourse last month, bringing the year-to-date (YTD) volume to 21.5 million contracts worth some US$1.2 trillion, SGX said on Friday.<\/p>\n
Global financial markets have been relatively less volatile for most of this year with no sustained volatility hotpots, except for the British pound, the bourse operator noted.<\/p>\n
Key globaleconomic themes also remained unchanged in the past few months, with the US-China trade war still dominating headlines.In the UK, Brexit woes still weighed on sentiment, and volatility in the poundhas returned asthe elections approach.<\/p>\n
In Chinese markets, the US-China trade negotiations continued to drive activity in November, after a quiet October from the extended public holidays.<\/p>\n
Well be curating stories from management guru John Bittleston and making them free to read.<\/p>\n
Early last month, reports of a phased rollback in tariffs as part of the phase-one trade deal drove up volumes in USD\/CNH (US dollar and offshore Chinese yuan) futures on SGX. In anticipation of the deal, the yuan fell below 7 against the US dollar, although this was not sustained due to concerns that discussions may be premature, SGX said.<\/p>\n
Overall, the yuan gained 0.3 per cent against the US dollar in November despite lingering concerns on the outcome of the trade war.<\/p>\n
AboutUS$79.6 billion in USD\/CNH futures on SGX were traded last month, climbing 38 per cent year on year.The average daily volume rose to US$3.79 billion in November, from US$3.02 billion a month ago.<\/p>\n
YTD volumes of SGX USD\/CNH futures exceeded US$828 billion - more thandouble the US$534 billion recorded for the whole of 2018, the bourse operator said on Friday.<\/p>\n
Open interest for SGX USD\/CNH futures at the end of November was US$5.8 billion or 57,857 contracts, representing close to 70 per cent of the open interest across all exchanges with similar offerings, SGX noted.<\/p>\n
On the other hand, in India, the rupee weakened about 1.3 per cent in November, despite strong inflows into Indian equities from foreign portfolio investors.<\/p>\n
Rupee markets saw low volatility and weak trading momentum, resulting in trading volume for SGX INR\/USD (Indian rupee and US dollar) futures totalling just above US$29 billion from 1.04 million contracts last month.<\/p>\n
The average daily volume in November for SGX INR\/USD futures was US$1.46 billion.<\/p>\n
Key indicators in India continue to point to a lacklustre economy, SGX noted. Industrial production fell 4.3 per cent in September, the lowest in almost eight years and lower than the estimated drop of 2.5 per cent.<\/p>\n
\"The weakening economy poses further downside risks to growth and the budget deficit. At a fiscal deficit of over 7 trillion rupees (S$130 billion), India has already surpassed its annual deficit target in the first seven months of the fiscal year,\" SGX said.<\/p>\n
Moody's also cut India's rating outlook from stable to negative in November, citing a host of issues from a worsening shadow banking crunch, and a prolonged slowdown in the economy to rising public debt.<\/p>\n
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More SGX FX futures traded in Nov amid surge in offshore yuan contracts - The Business Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Fri, Dec 13, 2019 - 11:36 AM DESPITE subdued global currency markets, trading activity in foreign exchange (FX) futures on the Singapore Exchange (SGX) grew to US$110 billion in November, up 12.5 per cent month on month and 9 per cent year on year. Continue reading