LeapRate Exclusive… LeapRate has learned, in discussions with various retail forex brokers in different locations around the globe, that November FX trading volumes will be somewhat lower than the record / near-record volumes reported by many in the industry during September and October. After two months of near nonstop volatility, the industry standard EURUSD has spent most of November in a fairly tight 1.24-1.25 trading band.
However a lot of that slack has apparently been picked up by CFD trading – in particular oil and gold CFDs, as those commodities took over the volatility baton during November.
In particular crude oil – as OPEC decided against a production cut on Thursday, crude prices dropped by more than 6% and traded below $70 per barrel for the first time in more than four years. This marks a more than 30% drop in crude prices since the summer, as demonstrated by the chart below, which has made commodity CFDs a leading trade vehicle during much of the past month.
WTI crude oil prices, past five years. Source: CNBC.
With a number of leading oil industry analysts and observers calling for further volatility and drops in oil prices – with several looking at the possibility of $30-$40 per bbl oil – this might be just the beginning of a growing CFD trading trend.
We'll begin to see actual trading results for November early next week. Stay tuned to LeapRate…
