FX volumes on Thomson Reuters dip for second month in August

Mon Sep 9, 2013 9:36am EDT
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LONDON, Sept 9 (Reuters) - Daily spot foreign exchange trading volumes on Thomson Reuters dealing platforms fell in August from a month earlier, company data showed on Monday.

Average daily spot volumes were $107 billion in August, down 6 percent from $114 billion in July and also lower than the $115 billion in August 2012. This is the second straight month that daily volumes on the Thomson Reuters platform have fallen.

On FXall, the electronic foreign exchange platform purchased by Thomson Reuters last year, average daily volumes fell to $97 billion in July from $102 billion in July. Volumes were up 15 percent from August 2012 when they were at $84 billion.

Forex volumes are showing signs of flagging after hitting record highs earlier this year. Part of the reason for the drop in volumes in August is because most traders are on holidays.

Earlier this month, EBS, which competes with Thomson Reuters in the FX dealing business and is owned by ICAP, said volumes fell by 12 percent from a year ago.

EBS is the leading liquidity provider for the euro, the yen and the Swiss franc.

Thomson Reuters platforms provide more liquidity for other currencies like the British pound and the Australian and Canadian dollars.

While activity in the euro/dollar has been muted, which weighed on EBS volumes, trading in the British pound was reported to be good due to the impact of the Bank of England's forward guidance.

Under the guidance plan, unveiled in early August by new BoE Governor Mark Carney, the bank pledged to keep policy accommodative until the UK jobless rate fell to 7 percent from 7.8 percent, currently.