FX Volumes in North America and the UK Jumped Significantly in April 2021

Average daily FX turnover in the UK reached $2,985 billion during April.

The foreign exchange (FX) volumes across different international markets spiked significantly in April 2021 due to a rise in demand for FX trading products. According to the latest survey results released by the Foreign Exchange Committee, the average daily volume in North America during the April 2021 surveyed period rose 26.4% compared to the same period in 2020.

Overall, the average daily volume in total over-the-counter (OTC) foreign exchange instruments (including spot, outright forward, foreign exchange swap and option transactions) was $966.7 billion in April 2021, compared to $933 billion in October 2020.

Since October 2020, the largest jump in volume occurred in EUR/USD ($27.8 billion increase) and USD/CAD ($19.4 billion increase). Compared to April 2020, the average daily volumes increased in spot, forward, swap and OTC option transactions by 18.3, 19.4, 41.8 and 22.0 percent, respectively.

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Formed in 1978, the Foreign Exchange Committee is composed of individuals from institutions that participate actively in the foreign exchange markets as well as other financial markets worldwide.

FX Volumes in the UK

According to the latest survey results published by the Bank of England (BOE), the average daily reported FX turnover in the UK reached a record high of $2,985 billion in April 2021, which is 24% higher than April 2020. USD/EUR remained the most popular trading pair in London with an average daily turnover of nearly $913 billion in April 2021. USD/GBP maintained its position as the second most commonly traded currency pair in London.

“Turnover in FX swaps rose to $1,575 billion, an increase of 18% relative to October 2020, and turnover in FX spot increased by 14% since October 2020 to $807bn. Turnover in Outright forwards (+14%) and NDFs (+15%) also rose relative to October 2020. Turnover in all instruments increased when compared to the April 2020 survey. USD/EUR remained the most commonly traded pair in London, with an average daily turnover of $913.6 billion in April 2021, reaching all-time highs. This represented a 17% increase on the October 2020 survey results and a 27% increase on the April 2020 figures,” BOE mentioned.

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