Currency Trading Shrinks More Than 20% in U.K., American Markets

Foreign-exchange trading in the U.K. and North America dropped by more than 20 percent in October from a year earlier, reports from the nations’ central banks show.

North America’s average daily volume was $809 billion, down 26 percent from a year earlier, the Federal Reserve-sponsored Foreign Exchange Committee said on Monday in a statement on its website.

Turnover dropped 13 percent in the U.K. to $2.15 trillion in October, down from $2.48 trillion in April, and 21 percent lower than a year earlier, the Bank of England’s Foreign Exchange Joint Standing Committee said. That was Britain’s lowest daily level since October 2012.

The declines coincided with currency managers losing money in October, compared with a year earlier, according to a Parker Global Strategies LLC index that tracks top funds in the industry. Global currency volatility fell in that month from April, though it peaked at seven-month high in early September, according to a JPMorgan Chase & Co. gauge of currency price swings. This came as China unexpectedly devalued the yuan in August, sending shocks across the global foreign-exchange markets.