August is a solid month for forex seasonals, let's look at some of the trends

  • August is second-strongest month for US Dollar Index

  • August is the best month for bonds (worst of yields).

  • USDJPY is in the midst of a four month bout of weakness that extends through October. However, it's gained in 3 consecutive Augusts

  • We wrote about Australian dollar seasonal weakness in August.

    Not surprisingly, it's also the worst month for NZD.

  • August is the third best month for gold, but beware because July was also a strong seasonal month and it's been a dog. Sometimes a market is just a dud and seasonals are only a secondary (or tertiary) factor

  • Overall best seasonal trade may be AUD/JPY shorts. The pair has averaged a 2.24% decline in the past 10 years with declines in 8 of 10 years.

Here are the four seasonal trades we had for July.

I'll be speaking live with Dale Pinkert at FXStreet in a few minutes about markets and seasonals.