NEW YORK , Dec. 6, 2023 /PRNewswire/ -- In a recent Technavio report titled Foreign Exchange Market is projected to grow at a rapid pace in the coming years. The market size is projected to grow by USD 516.48 billion, accelerating at a CAGR of 10.31% from 2023 to 2028. It is revealed that, Europe is estimated to contribute 43% to the growth of the global market. Download the sample report here

The market's growth is significantly influenced by increased liquidity, which is particularly notable in the global foreign exchange market, known for its ease of trading multiple currencies worldwide. The swift access to news and pricing empowers foreign exchange traders with current information, boosting market expansion during the forecast period.

In North America, foreign exchange trading activity surged by 3.6% from October 2020 to October 2021, attributed to ongoing trade monitoring and surveillance in the market. Tightening regulatory scrutiny of leading companies was necessitated following recent collusive activities and benchmark manipulations in currency markets, prompting more transparent trading activity records. Sell-side dealers are expected to play a significant role ahead, potentially enhancing audit standards and facilitating better communication among traders. Furthermore, periods of low volatility often lead to consistent earnings in stable currencies considered safe havens, while speculative counterparts may experience substantial gains.

Technavio highlights the emerging trends of Foreign Exchange Market:

• Market transparency significantly shapes market growth, providing clarity on traded assets, prices, participants, and global currency movements.
• The global foreign exchange market offers full access to comprehensive market data, enabling real-time portfolio monitoring across multiple nations and time zones.
• Absence of government or central bank control prevents market cornering or prolonged price fixing, although short-term advantages due to information lag exist but are unsustainable.
• The market's immense size contributes to fairness and efficiency, fostering market expansion in the forecast period.

The market is segmented by Type (Reporting Dealers, Other Financial Institutions, and Non-financial Customers),  Trade Finance Instruments (Currency Swaps, Outright Forward And FX Swaps, and FX Options), Geography (North America, Europe, APAC, South America, Middle East And Africa)

The reporting dealers segment is expected to experience considerable growth during the forecast period. Participants in the foreign exchange market carry risky inventory positions as they reach maturity. In situations where liquidity is lacking, those suppliers who absorb market imbalances receive high returns as compensation. These returns mirror the risk premium linked to non-diversifiable risks.

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Companies like Standard Chartered PLC, Bank of America Corp., and JPMorgan Chase and Co. are major players in the Foreign Exchange Market.

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According to Technavio's analysis, The Foreign Exchange Market Analysis Report from 2024 to 2028 highlights significant market trends, such as increasing liquidity and transparency in trading. It identifies challenges like counterparty risks due to market regulations and outlines the dominance of reporting dealers in driving market growth. Regional insights emphasize Europe's substantial contribution and North America's resilience amid rising trading activity. Overall, the report provides comprehensive insights into key drivers, emerging trends, and regional market dynamics impacting the global foreign exchange landscape.

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TOC

1. Executive Summary
2. Market Landscape
3. Market Sizing
4. Historic Market Size
5. Five Forces Analysis
6. Market Segmentation by Type
7. Market Segmentation by Trade Finance Instruments
8. Customer Landscape
9. Geographic Landscape
10. Drivers, Challenges, and Trends
11. Company Landscape
12. Company Analysis
13. Appendix

About US

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio