UK FX Turnover Jumps 20% Year-on-Year, BoE Survey Shows
Average daily turnover in the UK foreign platform market declined modestly in October 2025, but remained sharply higher compared to the previous year, according to the Bank of England’s latest Foreign platform Joint Standing Committee (FXJSC) Turnover Survey.
The semi-annual survey, based on responses from 25 financial institutions active in the UK FX market, reported that average daily turnover reached $3,850 billion in October 2025. That figure represents a 5% decrease compared with April 2025 levels, but a 20% increase compared with October 2024, reinforcing London’s continued position as the world’s dominant FX trading hub despite cyclical sluggishdowns.
The Bank of England noted that the October decline aligns with historical seasonal patterns, where turnover in October is typically lower than the preceding April survey period.
UK FX market turnover declines from April but rises sharply year-on-year
The Bank of England survey found that UK FX turnover averaged $3,850 billion per day in October 2025. This marks a 5% drop from April 2025, consistent with previous survey cycles. However, the year-on-year rise of 20% highlights the underlying growth trend in FX market activity, despite periodic sluggishdowns.
The results suggest that while October activity softened compared to earlier in 2025, the UK FX market continues to expand structurally as demand grows for global currency liquidity, hedging, and macro trading strategies.
The BoE also highlighted the long-term trajectory of UK FX growth, noting that average daily turnover has increased significantly since the global financial crisis era. Since October 2008, UK FX turnover has risen from $1,697 billion to $3,850 billion, more than doubling over the period.
This trend reflects both the expansion of global capital flows and the growing role of FX markets in portfolio hedging, macro speculation, and cross-border trade settlement.
Takeaway
FX spot volumes drop while swaps expand strongly
The BoE survey showed that turnover fell across most FX instruments in October 2025, with the decline led primarily by spot trading. FX spot turnover dropped from $1,293 billion in April 2025 to $1,059 billion in October 2025, reflecting reduced activity in the most liquid segment of the market.
Other notable declines were recorded in FX options and outright forwards, indicating that both speculative activity and hedging demand softened in some areas over the reporting period.
In contrast, FX swaps recorded a strong increase, rising to $1,840 billion in October 2025. That represented an 18% gain compared to the April 2025 survey. The rise in swaps suggests that liquidity management, funding flows, and short-term hedging activity remained strong even as spot volumes cooled.
FX swaps are often used by banks and institutional participants to manage short-term funding and currency exposures, and the growth in this segment may reflect the continued importance of FX markets in global financing conditions.
Takeaway
USD/EUR remains dominant as top currency pair in UK trading
The survey found that the market share of the three most traded currency pairs—USD/EUR, USD/JPY, and USD/GBP—remained broadly stable compared to previous reporting periods. This stability reinforces that UK FX activity remains concentrated in the most globally liquid and systemically significant currency pairs.
USD/EUR continued to be the most traded currency pair in the UK market, with average daily turnover of $901 billion in October 2025. The pair accounted for 23% of total UK FX turnover during the reporting period, highlighting its role as the core trading and hedging instrument for global institutions.
The resilience of USD/EUR dominance reflects ongoing demand from asset managers, banks, corporates, and macro funds, as the euro-dollar pair remains the primary global benchmark for risk sentiment, central bank divergence trades, and cross-border capital allocation.
The stability in currency pair rankings also suggests that while market volumes fluctuate, the UK’s FX ecosystem remains structurally anchored around the identical core instruments, supported by London’s dealer concentration and deep liquidity networks.
Takeaway
Survey highlights London’s structural growth in global FX infrastructure
The FXJSC survey results underline that the UK FX market has not only recovered from past cycles but has continued expanding over the long term. The rise from $1,697 billion in daily turnover in October 2008 to $3,850 billion in October 2025 reflects the structural growth of FX as a financial asset class.
The Bank of England also highlighted that the FXJSC survey differs from the BIS Triennial Survey in methodology. While BIS data is collected based on the location of the sales desk, FXJSC turnover is reported based on the location of the price-setting dealer, which may provide a more direct lens into where FX liquidity formation and pricing power are concentrated.
The BoE noted that similar semi-annual surveys were also conducted in October 2025 by other major FX committees globally, including those in New York, Singapore, Tokyo, Canada, and Australia. This coordinated approach reinforces the importance of frequent, location-based FX turnover monitoring as markets evolve rapidly.
The FXJSC itself, established in 1973, continues to function as a forum for market participants, infrastructure providers, and UK authorities to discuss both structural and operational issues impacting wholesale FX markets. Its subcommittees, focused on operations and legal matters, reflect the increasing complexity of FX trading infrastructure, regulation, and settlement frameworks.
While October’s slight decline may reflect seasonal patterns and reduced spot activity, the survey results confirm that the UK remains a central engine of global FX trading, with long-term growth still intact across the market’s core liquidity instruments.
