The news of Donald Trump winning the 2016 US presidential elections triggered investor activity and resulted in a sharp growth in the trading volume of USD crosses and some other majors up to 10 times annual averages for the hour between 0200 and 0300 GMT on Wednesday, the day when the elections results were announced, Reuters reported, citing CLS Group, a settlement system for some 90% of the global forex market, reported.
Trading volume on the Mexican peso (MXN) also jumped. In fact, the USD/MXN pair posted the highest volume growth of 63 times normal levels. Meanwhile, for the hour major EUR/USD had a trading volume ten times normal levels and the USD/JPY and GBP/USD pairs saw an increase in volume of nine times and five times, respectively.
CLS Group is a provider of settlement, risk mitigation and operational services for the forex market . It was set up in 2002 and with 39 members and seven currencies, but since then has grown to include more than 90% of the market participants.
Data from major forex brokerages indicated Wednesday proved to be very successful in terms of trading activity. Many traders took advantage of the high volatility that came along with the US presidential elections outcome. As expected, financial markets reacted violently to the defeat of Democratic nominee Hillary Clinton to Republican rival Donald Trump. The MXN plunged by more than 13% to an all-time low against the dollar, which marks its biggest daily move in two decades.