Seasonal studies hint stronger USD in January

FXstreet.com (Bali) - Seasonal studies in forex markets suggest the US Dollar has a tendency to appreciate against most of its peers in January, with the exception - less clear - being commodity currencies (AUD, CAD), and the most notable performance being against the Euro and Swiss Franc.

Will history repeat itself?

In the past 22 years, the Euro declined vs the US Dollar 14 times. Judging by the performance at the start of the month in EUR/USD, fading a breakout of 1.38, only to be sold off in earnest to test uptrend line near 1.3550, traders may be giving initial indications of such propensity to trade heavily in January.