CLS Group says the average daily traded volume (ADV) submitted to it was $1.55 trillion in April, down 29.4% from March. This represents the lowest reported ADV by CLS since December 2017.
FX swap volume was $1.085 trillion per day in April, a 20.1 drop from March and down 5.4% year-on-year. Outright forward activity was $86 billion, a 22.3% monthly drop and down 7.7% year-on-year, while spot activity was $379 billion per day, a 46.3% decline from March but a 2.7% increase from April 2019.
“As market volatility stabilised through April, volume across all FX instruments experienced a significant downward trend,” says Masami Johnstone, head of information services at CLS. “The exception to the overall reduction in volumes was the activity observed during the end of month ‘London Fix’. In the hour following the fix at 16:00 BST, 30 April, a record $515 billion was traded, a 38% increase on the previous record of $371 billion seen on the last day of February 2020. This was driven, in part, by traders buying euros to rebalance their portfolios which contributed to record volumes for the following EUR crosses: EUR/USD, EUR/JPY, EUR/AUD and EURCAD.”
In the April Fix, the euro was heavily bought, with the headline EUR/USD pair rising more than 30 points during the Fix window.
Meanwhile SGX says FX futures volume was a notional $4.3 billion per day, a 45% drop from March’s peak but 10% up year-on-year as the exchange continues to build out its FX franchise.