LONDON: Average daily foreign exchange trading volumes rose 10% in December from a year earlier to $1.76 trillion, CLS said on Wednesday, driven by higher turnover in the euro/dollar and sterling/dollar exchange rates.

CLS, a major settler of trades in the FX market, said in a statement that the average daily traded volume of currencies submitted to it rose after increased trading in spot, swap and forward markets. Volumes in December were down 1.3% on November numbers, however.

Spot euro/dollar volumes surged 30% year-on-year and sterling/dollar by 10%, CLS added.

FX volumes soared in 2020 on the back of increased volatility as the COVID-19 pandemic and then news of a vaccine rollout sparked more trading. A Brexit trade deal in December also fueled greater trading in the British pound.