These decent results are not unexpected given the increase in general volatility since mid-February in certain key Forex pairs, commodities, and stock indices – and in this industry greater volatility (usually) translates into higher volumes. However, we at LeapRate believe that something deeper in happening, with online Forex firms enjoying an increase in activity being seen by all kinds of online and e-commerce businesses.
An interesting report by MasterCard Advisors, as reported in the Financial Times last week (http://www.ft.com/
The reason for the increase? Mainly high gas prices – with prices at the pump continuing to climb, consumers are pumping less gas (US petrol consumption was down 1.9% in April vs. the prior year), and doing more shopping from home, online. We believe this stay-and-do-
Early next week we should learn more with the Q1 results reports of FXCM and Gain Capital expected (although we already have FXCM’s Q1 volume numbers). Stay tuned.....
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