Currency markets reached record highs in October for average daily trading volume in the U.K. and North America, according to central bank reports.
The average daily volume was the greatest in the U.K., where it totaled $1.82 trillion, up 24 percent from a year earlier and 8 percent higher than in April, the Foreign Exchange Joint Standing Committee said in a statement on the Bank of England’s website today. In North America, daily turnover reached a record $772 billion, results of the Federal Reserve’s Foreign Exchange Committee’s survey showed.
Currency turnover increased in the run-up to the Fed’s policy meeting on Nov. 3, when it announced $600 billion in additional Treasury purchases to shore up the economy. The euro- dollar pair was the most traded in North America and the U.K.
“You were getting an acceleration in the view that the Fed was going to further debase its currency,” said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC in Greenwich, Connecticut. “You had that incessant slide in the dollar, particularly against the euro.”
In Canada, daily volume was $57.8 billion, according to a survey by the Canadian Foreign Exchange Committee. Singapore reported daily turnover of $238 billion, an increase of 3.2 percent from October 2009, the Singapore Foreign Exchange Market Committee reported.
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