London FX turnover hits new high as commodity currency trading soars

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Illustrative photo of US Dollar, Swiss Franc, British Pound and Euro banknotes, taken in Warsaw on January 26, 2011. REUTERS / Kacper Pempel / File Photo

LONDON, July 27 (Reuters) – Trading in the London forex market reached a record $ 3 trillion in average daily turnover in April, the Bank of England said on Tuesday, with significant increases dollar, pound sterling, Japanese yen and commodities related to commodities. currency volumes.

In its biannual survey of the turnover of the world’s largest exchange center, the bank said reported average daily UK currency volumes rose 24% from April 2020 levels. by the sharp rise in swap, spot and futures trading.

Volatility in forex markets has declined since a rout triggered by COVID-19 in 2020, but with record stock market trading volumes continuing to climb in 2021, the demand to buy and sell currencies has also increased. .

In addition to double-digit increases in the percentage of major currency pairs traded – euro / dollar, pound / dollar and dollar / yen – a huge rally in commodity prices over the past year as investors bet on a strong global economic rebound, fueled strong increases in trade in Canadian and Australian dollars.

The turnover of the Canadian currency against the US dollar jumped 46% from April 2020 levels to a daily average of $ 136.7 billion, while trade in the Aussie rose by 30% to $ 121.3 billion, the Bank of England said, making it the fourth and fifth most traded. currency pairs respectively.

Several emerging market currencies such as the Indian rupee also saw strong gains.

The Swiss franc was one of the few to experience a decline in turnover, as trade against the dollar declined slightly from last year.

Chinese yuan activity was up significantly from last April but has declined since the October survey.

Reporting by Tommy Reggiori Wilkes Editing by Mark Potter

Our Standards: Thomson Reuters Trust Principles.


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