Foreign Exchange Committee’s North American Volumes Notch YoY Growth

The latest survey results show a -1.3% decline in ADV in OTC forex instruments during October, relative to April.

The Foreign Exchange Committee (FXC), a multi-national cooperative conducting a semi-annual survey that includes FX data from leading dealers and banks, has reported its North American volumes today, which include the period of October 2016, according to a New York Fed filing.

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For the month ending October 2016, average daily volume in total over-the-counter (OTC) foreign exchange instruments, which includes spot, outright forward, foreign exchange swap and option transactions, came in at $881.3 billion. This constituted a fall of -1.3% from the average back in April 2016, as well as a climb of 8.9% YoY from October 2015.

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One of the primary culprits of the recent decline in October 2016 was attributed to a retreat in spot turnover, which had incurred a decline of -6.0% since the previous survey in April 2016. Furthermore, average daily turnover in options also fell by -6.6% in October 2016, though this was tempered by a growth in turnover across forwards and swaps by a respective factor of 1.3% and 4.7% respectively from April 2016.

Looking at specific turnover reported in October 2016 from “other dealers” and “nonfinancial customers”, this figure declined by -8.6% from April 2016. Meanwhile, turnover with “other financial customers” was virtually unchanged since the prior survey in April 2016.

In terms of specific FX pairs, the biggest mover was the USD/JPY, which saw a decrease in volume in October 2016, falling by $11.3 billion. Conversely, the largest increase in volume was prevalent in the GBP/USD and USD/MXN currency pairs, as turnover increased by $3.6 billion and $3.1 billion respectively in October 2016, relative to April 2016.

The entire survey can be read in full by accessing the following link.

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