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Watch out for EURUSD strength at year-end

Watch out for EURUSD strength at year-end

Watch out for EURUSD strength at year-end

in Seasonal Insights

One of the marked seasonal patterns around year-end in the currency space is that the dollar tends to fall. The weakness in the dollar causes a marked strength in EURUSD. So, watch out for any EURUSD strength starting from around December 20. Look at the strong seasonal pattern here.

Over the last 15 years, the EURUSD has risen between Dec 21 and Dec 30. The largest gain has been +1.55% in 2007 and the largest loss -0.74% in 2011. The percentage of winning trades has been 68.18%. The annualised return is 35.95%.

Major Trade Risks: The main risk to this seasonal pattern would be if omicron variant fears result in strong risk-off trading which could send the USD sharply higher on possible dollar risk-off flows.

HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial and get started right away.

 


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Legal Forms & Documents

Risk Warnings

Cookies Policy

Disclaimer: Any opinions made may be personal to the author and may not reflect the opinions of HYCM. All expressions of opinion are subject to change without notice. This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by an employee of HYCM, a third party or otherwise. Past performance is not an indication of possible future performance. Without the approval of HYCM, reproduction or redistribution of this information isn’t permitted.

Legal Information: HYCM is the trading name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Limited and Henyep Capital Markets (DIFC) Limited for which the Henyep Capital Markets group is holding company and its assets are a controlling equity interest in them.

* Cryptocurrencies are not available for trading under HYCM (Europe) Limited and Henyep Capital Markets (UK) Limited (retail clients only).

*Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party or otherwise.

Copyright © 2023 HYCM