The leading banks are enjoying record profitability (whereas as highlighted in a previous blog entry, currency hedge funds aren't doing too well). Volatility combined with wider bid/offer spreads continue to be major revenue contributors. Total turnover is a record USD175.3 trillion!
The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account. Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems.
To gain an insight into what some of these banks' views are about the market, here are a couple of links:
https://www.db-markets.com/portal/lang/en
http://www.dukascopy.com/swiss/english/marketwatch/fxbankforecast/