From January 2020 through January 2025, the value of money market funds under management in the United Kingdom (UK) remained relatively stable aside from one notable spike in value in October 2022, by January 2023, however, the spike had subsided, and fund levels had fallen below ** million British pounds.

How are money market yields linked to inflation? The money market yields are influenced by inflation expectations. When inflation expectations rise, investors typically demand higher nominal yields to offset the anticipated decline in purchasing power. Market sentiment regarding inflation is reflected in these yields, which act as indicators for both investors and policymakers. The inflation rate for the Consumer Price Index (CPI) in the United Kingdom went from under *** percent in March 2021 to a high of **** percent in October 2022. Although inflation declined to *** percent in October 2023, it remained well above the levels seen before 2021. Consequently, a significant increase in money market yields was observed. Beginning in 2022, the monthly average yields from the British government bonds continued to rise until they reached their peak in mid-2023, indicating higher inflation expectations.

What is LIBOR? The London Interbank Offered Rate, or LIBOR, is a benchmark interest rate that reflects the average interest rate at which major global banks lend to each other in the interbank market. It is used to establish interest rates for financial instruments such as adjustable-rate mortgages, business loans, and derivatives. The six-month overnight London Interbank Offered Rate based on the British pound increased month by month from 2022 onwards, reaching its peak in March 2023 at **** percent. This increase in borrowing costs has a ripple effect throughout the financial system, which means higher interest rates for businesses and consumers overall.

The net value of retail sales of money market funds in the United Kingdom (UK) fluctuated considerably between January 2020 and January 2025. The net value of retail sales of money market funds was negative in January 2025 and amounted to **** million British pounds. What are money market funds? Money market funds are a category of mutual funds that invest in liquid and short-term assets. The composition of money market assets is designed to provide investors with a predictable and relatively secure return on their investment while simultaneously preserving liquidity. In addition, the increasing inflow of money market funds signifies heightened investor demand for safety and liquidity, often triggered by rising risk aversion in the face of economic uncertainty or market volatility. In March 2020, the fund flow of money market funds in the United States jumped by over ** percent, surging from ***** to ***** billion U.S. dollars. This significant rise in money market fund flows could be attributed to the elevated economic uncertainty and market turmoil resulting from the COVID-19 pandemic. What do money market fund values indicate? The trajectory of the value of money market funds in a country reveals the sentiments of investors, the economic performance, and the evolution of the market. The ascending trend in these funds often indicates a flight to safety by those looking for security and liquidity, especially during times of increased market volatility or economic uncertainty. The value of money market funds in the United Kingdom remained quite stable, with a few exceptions. This indicates a general sense of security, low volatility, and a cautious approach to investing in the marketplace.

United Kingdom UK: Money Market Rate data was reported at 0.299 % pa in 2016. This records a decrease from the previous number of 0.392 % pa for 2015. United Kingdom UK: Money Market Rate data is updated yearly, averaging 5.373 % pa from Dec 1969 (Median) to 2016, with 48 observations. The data reached an all-time high of 15.377 % pa in 1980 and a record low of 0.299 % pa in 2016. United Kingdom UK: Money Market Rate data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s United Kingdom – Table UK.IMF.IFS: Money Market and Policy Rates: Annual.

The UK Mutual Funds Market is Segmented by Fund Type (Equity, Debt, Multi-Asset, Money Market, and Other Fund Types), by Investor Type (Households, Monetary Financial Institutions, General Government, Non-Financial Corporations, Insurers & Pension Funds, and Other Financial Intermediaries). The Report Offers Market Size and Forecasts for the UK Mutual Funds Market in Value (USD) for all the Above Segments.

United Kingdom BL: UR: GBP: FI: Money Market Mutual Funds (MMMF) data was reported at 377.000 GBP mn in Sep 2018. This records an increase from the previous number of 163.000 GBP mn for Jun 2018. United Kingdom BL: UR: GBP: FI: Money Market Mutual Funds (MMMF) data is updated quarterly, averaging 73.000 GBP mn from Sep 1997 (Median) to Sep 2018, with 85 observations. The data reached an all-time high of 430.000 GBP mn in Dec 2003 and a record low of 0.000 GBP mn in Mar 2001. United Kingdom BL: UR: GBP: FI: Money Market Mutual Funds (MMMF) data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB008: Bank Lending to UK Residents: By Industries: GBP (Quarterly).

In 2024, stock markets in the United States accounted for roughly 60 percent of world stocks. The next largest country by stock market share was Japan, followed by the United Kingdom. The New York Stock Exchange (NYSE) and the NASDAQ are the largest stock exchange operators worldwide. What is a stock exchange? The first modern publicly traded company was the Dutch East Industry Company, which sold shares to the general public to fund expeditions to Asia. Since then, groups of companies have formed exchanges in which brokers and dealers can come together and make transactions in one space. Stock market indices group companies trading on a given exchange, giving an idea of how they evolve in real time. Appeal of stock ownership Over half of adults in the United States are investing money in the stock market. Stocks are an attractive investment because the possible return is higher than offered by other financial instruments.

Graph and download economic data for Amount Outstanding of International Money Market instruments for All Issuers, Residence of Issuer in West Indies UK (DISCONTINUED) (IMMIRIAO1Z) from Q3 1993 to Q2 2015 about British West Indies, instruments, MMMF, and residents.

The 200-day pound to yen SMA continued to increase up to May 2025, indicating strengthening British pounds against Japanese yen. As of May 14, the pair is trading above the 200-day SMA level, signaling a bullish momentum. The Simple Moving Average or SMA is a common metric used within stock and FX market analysis, and especially focuses on long-term trends. The 200-day SMA, especially, is considered very important, as it displays the average price of a stock or currency over the past 200 days (or 40 weeks of trading). If the price of the asset remains above this average, it is generally considered to be in an upwards trend.

The UK mutual funds market, a significant segment of the broader global investment landscape, exhibits robust growth potential. With a global market size of $1.88 trillion in 2025 and a projected Compound Annual Growth Rate (CAGR) of 3.87%, the sector is driven by several key factors. Increasing retail investor participation, fueled by rising awareness of investment options and the accessibility of online platforms, contributes significantly to market expansion. Furthermore, the demand for diversified investment portfolios, particularly among high-net-worth individuals and institutional investors, is a major driver. The market's segmentation by fund type (equity, debt, multi-asset, money market, others) and investor type (households, financial institutions, government, corporations, insurers, and other intermediaries) highlights diverse investment strategies and risk appetites within the market. While regulatory changes and market volatility present potential restraints, the long-term outlook remains positive, supported by sustained economic growth and a favorable regulatory environment in the UK. Key players such as BlackRock, Fidelity, and Schroders are well-positioned to capitalize on these growth opportunities. The UK's strong financial infrastructure and reputation as a global financial hub contribute to its attractiveness as an investment destination, further bolstering the mutual funds market's prospects. The UK's relatively strong economy compared to other European nations and a growing emphasis on retirement planning are driving factors for the sustained growth within the UK mutual funds market. The popularity of passively managed funds and the increasing adoption of sustainable and ethical investment strategies are notable trends shaping the industry landscape. Competition amongst major players remains intense, leading to innovation in product offerings and service delivery. The continuing development of technology, particularly in areas like robo-advisors and digital platforms, is altering how investors interact with mutual funds. Analyzing the market segmentation reveals valuable insights: the equity fund segment is likely the largest, followed by debt and multi-asset funds; household investors represent the largest segment of investors; and the dominance of a few large players underscores the need for smaller players to differentiate through specialized product offerings or niche market targeting to compete effectively. Recent developments include: In December 2023, BlackRock introduced a UK version of its LifePath Target Date fund range, aiming to compete with similar offerings from Vanguard and Legal & General Investment Management., In September 2023, AEW, an affiliate of Natixis IM specializing in real estate investment, unveiled its inaugural place-based impact investing strategy. This strategy leverages real estate's capacity to provide social and community infrastructure by combining investments that target social and environmental impact.. Key drivers for this market are: Growing Personal Wealth is Driving the Market, Retirement Plannings are Driving the Market. Potential restraints include: Growing Personal Wealth is Driving the Market, Retirement Plannings are Driving the Market. Notable trends are: Growing Personal Finance Sector is Driving the Market.

United Kingdom UK Banks: GD: IP: Money Market Instruments data was reported at 850.000 GBP mn in Jun 2018. This records an increase from the previous number of 669.000 GBP mn for Mar 2018. United Kingdom UK Banks: GD: IP: Money Market Instruments data is updated quarterly, averaging 2,138.000 GBP mn from Mar 1998 (Median) to Jun 2018, with 82 observations. The data reached an all-time high of 4,720.000 GBP mn in Mar 2008 and a record low of 296.000 GBP mn in Dec 2015. United Kingdom UK Banks: GD: IP: Money Market Instruments data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB051: UK Banks Income and Capital Expenditure.

United Kingdom BL: UR: FI: Money Market Mutual Funds (MMMF) data was reported at 464.000 GBP mn in Sep 2018. This records an increase from the previous number of 251.000 GBP mn for Jun 2018. United Kingdom BL: UR: FI: Money Market Mutual Funds (MMMF) data is updated quarterly, averaging 167.000 GBP mn from Sep 1997 (Median) to Sep 2018, with 85 observations. The data reached an all-time high of 1,640.000 GBP mn in Jun 2005 and a record low of 0.000 GBP mn in Mar 2001. United Kingdom BL: UR: FI: Money Market Mutual Funds (MMMF) data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB006: Bank Lending to UK Residents: By Industries: All Currencies (Quarterly).

United Kingdom BL: UR: FG: FI: Money Market Mutual Funds (MMMF) data was reported at 588.000 GBP mn in Oct 2018. This records a decrease from the previous number of 667.000 GBP mn for Sep 2018. United Kingdom BL: UR: FG: FI: Money Market Mutual Funds (MMMF) data is updated monthly, averaging 192.000 GBP mn from Jul 2009 (Median) to Oct 2018, with 112 observations. The data reached an all-time high of 1,061.000 GBP mn in Jul 2009 and a record low of 21.000 GBP mn in Dec 2014. United Kingdom BL: UR: FG: FI: Money Market Mutual Funds (MMMF) data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB010: Bank Lending to UK Residents: By Industries: Facilities Granted: All Currencies.

The UK Capital Market Exchange Ecosystem is Segmented by Type of Market (primary Market and Secondary Market), Financial Instruments (debt and Equity), and Investors (retail Investors and Institutional Investors). The Report Offers Market Size and Forecasts for the UK Capital Market Exchange Ecosystem in Value (USD) for all the Above Segments.

United States Assets: Flow: Money Market Mutual Funds (MM) data was reported at -54.345 USD bn in Mar 2018. This records a decrease from the previous number of 99.599 USD bn for Dec 2017. United States Assets: Flow: Money Market Mutual Funds (MM) data is updated quarterly, averaging 0.000 USD bn from Dec 1951 (Median) to Mar 2018, with 266 observations. The data reached an all-time high of 411.944 USD bn in Dec 2008 and a record low of -332.086 USD bn in Mar 2010. United States Assets: Flow: Money Market Mutual Funds (MM) data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB024: Funds by Sector: Flows and Outstanding: Mutual Funds.

(CDID: CER6) Year - UK National Accounts, The Blue Book time series Datasets for each of the chapters in The Blue Book 2023 including the national accounts at a glance, financial and non-financial corporations, households and non-profit institutions serving households and summary supply and use tables.

As of May 13, 2025, the GBP/USD rate experienced a resistance around 1.33 level according to 50-day Fibonacci. Fibonacci — based off the famous infinite math sequence from 13-century Italy — is a metric often used in FX trading to find key levels of support and resistance. Essentially, the sequence potentially reveals thresholds on which traders can buy or sell assets and are frequently set as profit targets. When these retracements are met, traders will act.

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Foreign Exchange Market Size 2025-2029

The foreign exchange market size is forecast to increase by USD 582 billion, at a CAGR of 10.6% between 2024 and 2029.

The Foreign Exchange Market is segmented by type (reporting dealers, financial institutions, non-financial customers), trade finance instruments (currency swaps, outright forward and FX swaps, FX options), trading platforms (electronic trading, over-the-counter (OTC), mobile trading), and geography (North America: US, Canada; Europe: Germany, Switzerland, UK; Middle East and Africa: UAE; APAC: China, India, Japan; South America: Brazil; Rest of World). This segmentation reflects the market's global dynamics, driven by institutional trading, increasing digital adoption through electronic trading and mobile trading, and regional economic activities, with APAC markets like India and China showing significant growth alongside traditional hubs like the US and UK.
The market is experiencing significant shifts driven by the escalating trends of urbanization and digitalization. These forces are creating 24x7 trading opportunities, enabling greater accessibility and convenience for market participants. However, the market's dynamics are not without challenges. The uncertainty of future exchange rates poses a formidable obstacle for businesses and investors alike, necessitating robust risk management strategies. As urbanization continues to expand and digital technologies reshape the trading landscape, market players must adapt to remain competitive. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. Companies seeking to capitalize on these opportunities must navigate the challenges effectively, ensuring they stay abreast of exchange rate fluctuations and implement agile strategies to mitigate risk.
The ability to adapt and respond to these market shifts will be crucial for success in the evolving market.

What will be the Size of the Foreign Exchange Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic and intricate realm of the market, entities such as algorithmic trading, order book, order management systems, and liquidity risk intertwine, shaping the ever-evolving market landscape. The market's continuous unfolding is characterized by the integration of various components, including sentiment analysis, Fibonacci retracement, mobile trading, and good-for-the-day orders. Market activities are influenced by factors like political stability, monetary policy, and market liquidity, which in turn impact economic growth and trade settlement. Technical analysis, with its focus on chart patterns and moving averages, plays a crucial role in informing trading decisions. The market's complexity is further amplified by the presence of entities like credit risk, counterparty risk, and operational risk.

Central bank intervention, order execution, clearing and settlement, and trade confirmation are essential components of the market's infrastructure, ensuring a seamless exchange of currencies. Geopolitical risk, currency correlation, and inflation rates contribute to currency volatility, necessitating hedging strategies and risk management. Market risk, interest rate differentials, and commodity currencies influence trading strategies, while cross-border payments and brokerage services facilitate international trade. The ongoing evolution of the market is marked by the emergence of advanced trading platforms, automated trading, and real-time data feeds, enabling traders to make informed decisions in an increasingly interconnected and complex global economy.

How is this Foreign Exchange Industry segmented?

The foreign exchange industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Reporting dealers
  Financial institutions
  Non-financial customers


Trade Finance Instruments

  Currency swaps
  Outright forward and FX swaps
  FX options


Trading Platforms

  Electronic Trading
  Over-the-Counter (OTC)
  Mobile Trading


Geography

  North America

    US
    Canada


  Europe

    Germany
    Switzerland
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period.

The market is a dynamic and complex ecosystem where various entities interplay to manage currency risks and facilitate international trade. Reporting dealers, as key participants,

(CDID: CER6) Quarter - UK Economic Accounts time series Quarterly estimates of national product, income and expenditure, sector accounts and balance of payments.

(CDID: NIYT) Year - UK National Accounts, The Blue Book time series Datasets for each of the chapters in The Blue Book 2023 including the national accounts at a glance, financial and non-financial corporations, households and non-profit institutions serving households and summary supply and use tables.