Foreign exchange trading out of London declined 4 percent in October 2018 to $2.61 trillion, compared with six months earlier, thanks to a drop in volumes in swaps, a semi-annual survey by the Bank of England showed on Tuesday. The survey showed FX swaps are down $157 billion to $1.24 trillion, the largest absolute fall in turnover since October 2008 and representing an 11 percent decline from six months ago.
But spot turnover in London, the world's biggest currency trading hub, rose by 3 percent from six months ago to $775 billion daily. The decline in volumes traded was mixed for major currencies, perhaps a reflection of heightened US-China trade war tensions which impacted commodity-linked currencies like the Australian dollar with economic ties to Beijing.
Notable gains were seen in Australian dollar and Chinese yuan turnover, which were 12 percent and 17 percent higher respectively, compared with six months earlier. Dollar/yuan turnover increased to $73 billion per day, its highest absolute turnover to date and daily turnover in the euro-dollar exchange rate EUR= decreased by 6 percent to $728 billion per day. Daily cash volumes for sterling fell 8 percent to $324 billion compared with April 2018.
Comments
Comments are closed.