Future Outlook: Trends Shaping the Foreign Exchange Market
NEW YORK, NY, December 14, 2023 /24-7PressRelease/ — In a recent report by Technavio titled “Foreign Exchange Market Outlook,” it anticipates robust growth in the coming years, with the market size expected to increase by USD 516.48 billion at a compound annual growth rate (CAGR) of 10.31% from 2023 to 2028. The European region is predicted to be a significant contributor, accounting for 43% of the global market’s expansion. You can access the sample report for detailed insights.
The market’s upward trajectory is attributed to heightened liquidity, a notable feature of the global foreign exchange market, renowned for facilitating the seamless trading of multiple currencies worldwide. This market’s accessibility to real-time news and pricing empowers traders with current information, thereby fostering market expansion in the forecast period.
North America witnessed a 3.6% surge in foreign exchange trading activity from October 2020 to October 2021. This rise is linked to continuous market monitoring and surveillance efforts. Regulatory scrutiny has intensified in response to recent collusive activities and benchmark manipulations in currency markets, prompting the need for transparent trading records. The role of sell-side dealers is expected to be pivotal, potentially elevating audit standards and improving communication among traders. Additionally, stable currencies in times of low volatility offer consistent earnings, contrasting with speculative counterparts that may experience substantial gains.
Technavio outlines key trends in the Foreign Exchange Market:
Market Transparency: A crucial factor shaping growth by providing clarity on traded assets, prices, participants, and global currency movements.
Global Market Data Access: The market offers comprehensive data access, allowing real-time portfolio monitoring across multiple nations and time zones.
Absence of Central Control: The lack of government or central bank control prevents market cornering or prolonged price fixing, contributing to fairness and efficiency.
Market Size Impact: The immense size of the market contributes to fairness and efficiency, fostering expansion in the forecast period.
The market segmentation includes Reporting Dealers, Other Financial Institutions, and Non-financial Customers, along with Trade Finance Instruments such as Currency Swaps, Outright Forward And FX Swaps, and FX Options. Geographically, the market is divided into North America, Europe, APAC, South America, Middle East, and Africa. The reporting dealers segment is expected to experience significant growth, particularly in situations where liquidity is lacking, leading to high returns for those managing market imbalances.
Major players in the Foreign Exchange Market include Standard Chartered PLC, Bank of America Corp., and JPMorgan Chase and Co. Access the comprehensive analysis report now to uncover successful business strategies deployed by these companies in the foreign exchange market. According to Technavio’s analysis, the report from 2024 to 2028 highlights market trends, challenges, and regional dynamics impacting the global foreign exchange landscape, offering valuable insights for stakeholders.
Fixed Income Assets Management Market: The Global Fixed Income Assets Management Market size is estimated to grow by USD 9.71 trillion between 2022 and 2027 accelerating at a CAGR of 7.05%.
Venture Capital Investment Market: The venture capital investment market size is estimated to decline at a CAGR of 20.88% between 2022 and 2027. The market size is forecast to increase by USD 737.56 billion.
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
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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