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According to an annual client survey by JP Morgan published on Thursday, the biggest challenge likely to be faced by currency traders this year will be the availability of trading liquidity, as broader market volatility has fallen to record lows thanks to abundant central bank liquidity in global markets.

Key Findings:

“The views of the biggest 650 institutional trader clients, mostly focused on the $6.6 trillion a day foreign exchange markets, polled by JP Morgan point to a tricky year ahead for investors.

Among concerns about the year ahead, the availability of market liquidity was picked by 33% of respondents, receiving nearly twice as many votes as the next issue about workflow efficiency that FX markets will face in 2020.

The survey also found that traders expect to see the amount of trading volume via electronic channels increase to as much as 84% of their total compared with 74% in 2019.”