UK’s Foreign Exchange Committee Survey Shows Tepid Increase in FX Volumes

The semi annual survey showed a slight 3% YoY increase in volumes, though they have fallen over the past 6

The London Foreign Exchange Joint Standing Committee (FXJSC), administered by the Bank of England (BoE), has released its semi-annual survey of foreign exchange (FX) turnover in the UK, a composite tracking twenty-nine dealing banks in London, per a BoE filing.

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For the month ending October 2016, average daily volumes came in -2.0% lower relative to April 2016. This was offset by growth over a YoY basis, justifying 3.0% YoY since October 2015. In addition, the average daily reported UK FX turnover was $2.18 trillion per day in October 2016.

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Overall, the latest semi-annual survey results show that London retains a market share of roughly 40.0% of FX activity. In a recently released survey in North America from the New York Fed, volumes in the region also fell -1.3% in October 2016, though they were higher on a YoY basis.

The primary culprit for the decline in October 2016 in the UK was attributed to a falling volume of FX spot, or -8.0% since April 2016, to $692.0 billion per day. Conversely, most other FX products notched a tepid increase in turnover in October 2016 – furthermore, FX swap turnover incurred a -2.0% decline from April 2016 to $1.02 trillion per day.

In terms of currencies, the USD/JPY turnover pared its recent rise in October 2016, losing nearly -16.0% of its volumes from April 2016 to $302 billion per day. The USD/AUD turnover also continued its decline, falling -10.0% since April 2016. Finally, the GBP/USD turnover rose 8.0% to $281 billion per day, while the USD/CNY turnover stagnated at $40.0 billion per day.

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

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