The interbank market is a global network of banks and financial institutions that trade currencies among themselves. This market is an essential part of the foreign exchange market, providing liquidity and facilitating price discovery. Understanding interbank market trends can provide insights into the direction of the foreign exchange market and help traders make more informed trading decisions. Here are some key trends to consider:

1. Increased Trading Volumes: The interbank market has seen a significant increase in trading volumes over the years, driven by the growth of international trade and the increasing globalization of financial markets. According to the Bank for International Settlements, daily trading volumes in the interbank market were over $6.6 trillion in April 2019, up from $5.1 trillion in 2016.
2. Increased Use of Electronic Trading: The interbank market has also seen a significant shift towards electronic trading in recent years. The use of electronic trading platforms has increased efficiency and reduced trading costs for market participants. According to the Bank for International Settlements, electronic trading accounted for over 80% of trading volumes in the interbank market in April 2019.
3. Emergence of Non-Bank Market Makers: Traditionally, the interbank market was dominated by large banks and financial institutions. However, there has been a rise in non-bank market makers in recent years, including high-frequency trading firms and other non-bank financial institutions. These firms have brought new liquidity to the market and increased competition among market participants.
4. Volatility and Political Uncertainty: The interbank market is highly sensitive to changes in global economic and political conditions. Events such as Brexit, the US-China trade war, and the COVID-19 pandemic have led to increased volatility and uncertainty in the market. This has created opportunities for traders who are able to capitalize on market movements.
5. Increased Regulatory Oversight: The interbank market is subject to increased regulatory oversight in many jurisdictions. This has led to the adoption of new rules and standards aimed at improving transparency, reducing risk, and promoting market integrity. While these regulations may increase compliance costs for market participants, they also provide a more stable and secure trading environment.