Money News

Daily FX turnover drops nearly 6% to $1.65 trillion year-on-year - CLS

LONDON (Reuters) - Daily global currency trading volumes in August fell nearly 6% to $1.659 trillion year-on-year CLS data showed on Tuesday, as a lull following a COVID-19 led spike earlier in the year dented turnover.

CLS, a major settler of trades in the foreign exchange market, said the average daily traded volume in August was down from $1.75 trillion last year and also 0.5% below the $1.657 trillion seen in July.

The drop in market turnover coincided with a volatile month for currency markets with gauges of expected price swings for major currencies vaulting to a four-month high amid signs of second coronavirus waves.

August’s drop is a second consecutive monthly drop for FX volumes and comes after a big jump in turnover on trading platforms in March as the pandemic roiled financial markets and fuelled a sharp surge in market volatility.

Reporting by Saikat Chatterjee; editing by Marc Jones