Saxo Bank Securities Co., Ltd., the Japanese arm of the renowned multi-asset investment firm Saxo Bank, announced today a significant change in its trading conditions.

The company has decided to temporarily suspend its offering of fixed spreads on the EUR/JPY currency pair, citing ongoing global market instability and rising geopolitical risks.

In a brief notice issued to its clients, Saxo Bank explained that the decision comes in response to the increasingly unpredictable conditions that are currently affecting various financial markets worldwide. The broker noted that the current economic climate, coupled with heightened geopolitical tensions, has made it challenging to maintain fixed spreads, which are typically preferred by traders for their predictability and transparency.

The move reflects Saxo Bank's commitment to maintaining robust risk management practices and ensuring that its clients are protected in volatile market environments. By suspending fixed spreads, the broker aims to mitigate potential risks associated with sudden and extreme market fluctuations, which can lead to significant pricing anomalies and impact both traders and the firm.

This decision is particularly relevant given the current economic uncertainty and the ongoing geopolitical tensions that are influencing global markets. The EUR/JPY pair, which represents the exchange rate between the Euro and the Japanese Yen, is especially sensitive to such developments. The pair is often affected by shifts in risk sentiment, changes in central bank policies, and broader economic trends in both the Eurozone and Japan.

Saxo Bank's temporary suspension of fixed spreads on EUR/JPY is expected to remain in place until market conditions stabilize. During this period, traders who engage in EUR/JPY transactions with Saxo Bank will need to operate with variable spreads, which can fluctuate depending on market liquidity and volatility.