Currency market volumes fall 10 percent in July as Brexit boost fades
LONDON Aug 18 (Reuters) - Average daily trading in the global currency market shrank by just under 10 percent last month, falling back to $4.7 trillion after hitting the highest level in more than a year on the back Britain's vote in June to leave the European Union.
Data from settlement system CLS showed volumes down from $5.2 trillion a day on average in June, but up from $4.52 trillion a year ago.
Daily volumes have been hurt in recent months by regulatory changes that have crimped banks' risk-taking ability, and by lower global trade flows. Some in the currency industry had hoped the volatility in the two weeks following the Brexit vote might mark the start of a broader trend that would support more trading in general.
Instead, with many traders on holiday, the volatility of the pound has fallen back to levels seen at the start of 2016 and those on the euro are back at their lowest in two years.
The average daily input volume submitted to CLS, combining the settlement and aggregation services, was at 1,050,046 down 9.7 percent from 1,163,083 in June 2016. (Reporting by Patrick Graham; editing by John Stonestreet)
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