LONDON, Dec 16 (Reuters) - Average daily foreign exchange
trading volumes fell 4.2% year-on-year in November, CLS said on
Monday, as long-running trade talks between the United States
and China and the run-up to the British election suppressed
broader market volatility.
CLS, a major settler of trades in the foreign exchange
market, said in a statement that November's volumes dropped
to$1.61 trillion, down from last year's $1.68 trillion. The
November 2019 daily average was also down 10% from October's
number, however.
The decline in FX turnover was the second consecutive month
on CLS platforms. Banks have increasingly routed more volumes on
their internal platforms this year, according to a recent Bank
for International Settlements report. Foreign exchange volumes have generally been rising in 2019
despite near record-low volatility. However, uncertainty about whether the U.S. and China would
agree a deal to resolve part of their trade war and about who
would win last week's general election in Britain encouraged
more forex traders last month to sit on the sidelines and wait
for clarity.