Latest News- Foreign Exchange Market: Reporting dealers is expected to lead the Type segment during 2025-2029

The Foreign Exchange Market is being driven by Growing urbanization and digitalization

The Foreign Exchange Market is expected to grow at a CAGR of 10.6% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 582 billion. The foreign exchange market operates continuously, providing traders with uninterrupted access 24 hours a day. This is facilitated by various international time zones and the decentralized nature of trades executed through a global network of computers. Consequently, unlike securities markets, the foreign exchange market does not adhere to a specific closing time. Instead, the exchange rate quoted as the USD closing rate refers to the rate prevailing at the New York market's closing time, acknowledging the ongoing trading activity beyond this point. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Reporting dealers
  • Financial institutions
  • Non-financial customers
• Trade Finance Instruments
  • Currency swaps
  • Outright forward and FX swaps
  • FX options
• Trading Platforms
  • Electronic Trading
  • Over-the-Counter (OTC)
  • Mobile Trading
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • India
    • Japan
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing urbanization and digitalization
• Foreign exchange increases market liquidity
• Increasing central bank interest rates

However, the market also witnesses some limitations, which are as follows:

• Uncertainty of future exchange rates
• Transaction risks in financial transactions
• Counterparty risks with respect to foreign exchange

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Market Scope in Foreign Exchange Market Research Report

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Research Analysis Overview

The foreign exchange market, also known as the interbank market, facilitates currency conversion between different countries. Central banks and commercial banks hold foreign exchange reserves for this purpose. FX risk management is crucial for businesses and investors to mitigate currency risk, which includes interest rate risk, liquidity risk, operational risk, and FX exposure. Hedging strategies like forward contracts, FX options, FX swaps, FX futures, and FX spot trading help manage these risks. FX rates, volatility, correlation, sentiment, and technical/fundamental analysis provide insights for FX trading signals. FX platforms, brokers, apps, education, news, research, analysis, data, charts, indicators, strategies, portfolio management, compliance, regulation, market structure, liquidity, and depth are essential components of the dynamic FX market landscape.

Market Research Overview

The global diversified financial services sector encompasses businesses offering a range of financial solutions, including banking, insurance, and capital markets. Notably, this market excludes Regional and Diversified Banks. According to Technavio, the market size is determined by the consolidated revenue generated from companies dealing in bonds and stocks. The market's growth is attributed to the digital transformation sweeping the industry. Companies have integrated advanced technologies and platforms to enhance operational efficiency and customer experience. Key financial instruments in the foreign exchange market include currency exchange, spot trading, forward contracts, futures contracts, and options contracts. Currency hedging and speculation are also significant activities. FX trading platforms and electronic trading have become essential tools for market participants, enabling real-time transactions and price discovery.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/