Tightening profit margins + macroeconomic challenges may lead to foreign exchange and interest rate trading income reaching its lowest level since the pandemic

Affected by tightening profit margins and macroeconomic challenges, global banks' foreign exchange and interest rate trading revenues are expected to hit their lowest level since the pandemic. Data shows that over 250 institutions are expected to generate $32 billion in revenue from interest rate trading, a year-on-year decline of 17%; and $16.7 billion from currency trading, a year-on-year decline of 9%. Market confidence in central bank interest rate cuts has decreased, and macro trading revenues have been impacted by intensified competition and advancements in electronic trading. It is expected that interest rate trading revenues will drop to $30.9 billion in 2025, while foreign exchange traders' revenues will reach $17.2 billion and $17.6 billion in 2025 and 2026, respectively