Daily spot forex volumes rebound but remain lower year-on-year

Spot trading totalled $123 billion, up 35 per cent from $91 billion in December - traditionally the lightest month of the year - and the highest since March 2015. It was down nine per cent from the $135 billion recorded a year ago, however.

Reuters reported that the lower volume compared with the January 2015 figures cemented the view of many observers that the world’s largest financial market is in decline because of tighter bank regulation, a widespread slowdown in emerging markets and lighter global trade flows.

Much of the trading in sterling and dollar bloc currencies goes through Thomson Reuters systems. Rival EBS has more euro and yen volume. ■