LONDON: Daily global currency trading volumes in July fell more than 5% to nearly $1.66 trillion versus the same month last year as the summer holiday period dented turnover, CLS data showed on Tuesday. CLS, a major settler of trades in the foreign exchange market, said in a statement that the average daily traded volume of currencies submitted to it fell to almost $1.66 trillion in July from $1.75 trillion last year.
On a monthly basis, average daily turnover posted a bigger drop of nearly 7% from June's $1.78 trillion. The drop in market turnover in July coincided with a particularly difficult month for the US dollar when the greenback declined 4.1%, its biggest monthly fall in value against its rivals in a decade.
Data from MarketAxess, a major bond trading platform and data provider, showed European bond trading volumes also decreased in July with German government bond activity falling by a third to a six-month low.
July's drop in FX volumes comes after a big jump in turnover on trading platforms in March as the coronavirus pandemic slammed financial markets, fuelling a sharp surge in market volatility.
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