FX Volumes Continue Growth Trajectory in North America, FXC Survey Shows

The rise in the average daily volume in North America were broad based and were reported across almost all currency

The Foreign Exchange Committee (FXC), a multi-national cooperative conducting a semi-annual survey that includes FX data from leading dealers and banks in North American, today issued its twenty-eighth report which covers April 2018.

According to a New York Fed filing, average daily volume in total over-the-counter (OTC) foreign exchange instruments (including spot, outright forward, foreign exchange swap, and option transactions) was $993.5 billion in April 2018, up 11.7 percent from the ADV figure in the year ago. In addition, the average daily volume was also 5.4 percent higher than the $944.3 billion reported back in October 2017 survey.

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The rise in the average daily volume in North America was broad-based and was reported across almost all currency pairs, instrument types, counterparty types, and execution methods.

One of the primary culprits of the recent uptick in April 2018 was attributed to an increase in spot turnover, which had staged a rebound of 15.6% since the survey of April 2017. Furthermore, average daily turnover in OTC options also climbed by 19% in April 2018, which was also accompanied by a growth in turnover across forwards and swaps by a respective factor of 13% and 4.6% respectively from April 2017.

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Euro, Yen, and Pound retain top positions

In terms of specific FX pairs across the spot market, EUR/USD turnover rose 10 percent in the six months to April 2018, having yielded $100.4 billion per day compared to $90.9 billion in October 2017. USD/JPY was the next most commonly traded pair, totaling $68.2 billion, almost unchanged on a year-over-year basis.

Rounding out the top three trading pairs was the GBP/USD, which was also the biggest mover after seeing an increase in volume by 13 percent from the latest survey, coming in at $43.7 billion.

The Foreign Exchange Committee (FXC) surveys to provide market participants with developments in the North America FX market. In conducting the survey, the Federal Reserve of New York provides technical assistance in collecting and processing the data of respective respondents.

Similar surveys are also carried out in the UK, Singapore, Canada and Australia.

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