FX Trading Volumes Plunge in May 2025 Across Major Platforms

Foreign exchange trading volumes experienced a significant decline in May 2025 across institutional platforms including Cboe, FXSpotStream, TFX, and Euronext. The sharp contraction follows a period of relative market stability, suggesting reduced institutional participation and potentially lower volatility in major currency pairs. Market participants attribute the volume crash to several factors including seasonal effects, reduced corporate hedging activity, and uncertainty surrounding central bank policy divergence. The decline in liquidity may lead to wider bid-ask spreads and increased slippage for traders, particularly during off-peak hours. Technical indicators suggest major pairs like EUR/USD and GBP/USD have been trading in tighter ranges, contributing to decreased speculative interest. This volume reduction could persist into June unless significant economic catalysts or policy shifts emerge to reignite market activity.