GemForex | Numbers Outlook 2022.06 Q2

Total Trading Volume during the Month of June 2022 had reached over $385 billion, consistent year-over-year when compared with June 2021. Lower than the average trading volumes than the immediate previous 12 months ($445 billion). As expected, during the months of the summer season there is usually a drop in trading volumes across the industry, considering that fact, we can conclude that both the volumes and the profitability of the Brokerage is at an efficient uptrend.

Other client-centric parameters for the Company are also on a healthy uptrend. The number of Active Traders is showing a steady increase during the Month reaching 51,465 with 4.9 million unique trades which is an increase year-over-year when compared to June 2021 with the respective numbers being 38,538 (34% increase) and 3.1 million (58% increase). The numbers for the previous average 12 months, ending June 2022, were 48,547 (6% increase) and 4.13 million (18% increase) respectively.

During June 2022, the company had processed over $49 million in Client Withdrawals, with the Partner Rewards payouts reaching $5.4 million for the month.

The end of June also marks the end of Q2 2022, a time to reflect on the year thus far. We trust the numbers in showing us whether you trust us. Analyzing the year so far 2022 has been a great success, Total Volume in the 6-month period thus far has reached more than 2.5 trillion, a remarkable 32% increase when compared with the same period last year, 1.9 trillion. Few companies in the sector are experiencing this growth after being in operations for more than year 8 and especially at these volumes.

Other indicators indicating the success thus far in 2022, Average Monthly Volume at 427 billion, a 9% increase to the full year of 2021. Average monthly Traders 52k, 32% increase to 2021, average monthly trading number 4.75 million, 40% increase to 2021.

Monthly Market Movers – June 2022

Inflation expectations and rising interest rates have been the story to follow this year thus far. Data gathered from our market analyst suggest that inflation expectations and thus interest rates may have peaked.

Inflation Swaps, which is one of the ways to measure long term inflation expectations, suggest inflation had peaked in the spring. This can be viewed as a sign that markets are more confident that central banks will eventually get inflation under control and that we have seen the peak in yields as bonds dont need to compensate for much inflation risk.

Truer in the US than other economic areas such as the eurozone as the FED has more aggressively taken tightening measures, whereas in the EU the base rates are still negative leaving investors and markets less confident. This would suggest that the US and eurozone markets may follow slightly different paths over the coming weeks and months.

This would be bullish for the overall markets especially in the US, with risk-on assets attracting more investors. There still might be some headwind ahead before we see a more confident market rebound, but one needs to be prepared for these situations to optimize their portfolios.

Market participants should look for validations during upcoming monthly news, particularly Inflation and Consumer sentiment reports. Other news to follow that could have a major role in a rebound scenario would be the Ukraine/Russia situation; as well as the latest bullish market news of the US/China trade dialogue, with hopes of easing the Trump-era tariffs on China.