FX Trading Revenues Soar At Most U.S. Banks Third Quarter Volatility, Dollar Trend Cited

BANKS

It may not have been much of a quarter overall, but most U.S. banks reported sizable increases in foreign exchange trading revenues during the third quarter, boosted by unusually volatile market conditions and a clearly defined trend towards a lower dollar.

"You had the two characteristics the banks needed to make money in the foreign exchange market [in the third quarter]. One was you had a good deal of volatility and two you had a pretty pronounced trend," says Richard Bove, a bank analyst