LONDON (Reuters) - Average daily foreign exchange trading volumes fell 9.6% year-on-year in May to $1.62 trillion, CLS said on Monday, as calmer currency markets discouraged investors from placing trades.
CLS, a major settler of trades in the foreign exchange market, said in a statement that May’s volumes were also down marginally from April’s daily average.
FX volumes have fallen in 2019 as volatility plunged to more than four-year lows, with price swings in the euro-dollar currency pair - the world’s most traded - particularly low. CLS’s April volumes were also down 8.3% versus a year earlier.
Global central banks have shifted toward a more dovish stance this year and with investors struggling to decipher whether a slowdown in growth in major economies is temporary or something more serious, currency price volatility has slumped.
CLS said May’s daily trading volumes of swaps, spot and forward FX products were all lower on a year earlier.
Reporting by Tommy Reggiori Wilkes; Editing by Tom Finn