A look at three of the top forex seasonal patterns for January:
#1: The best time to be a dollar bull
If you liked the US dollar in 2015, you'll love it in 2016 -- at least to start the year. January is by far the best month on the calendar for the US dollar index.
Since 2000, the average gain has been 1.03% and it's been 1.00% over the past 30 years. Last year the rule proved true with a whopping 5.02% gain that was the start to a sizzling year for USD.
Other January seasonal patterns:
- January is the fourth worst month for AUD and NZD versus USD
- It's the best month for USD/JPY over the past 30 years but over the past 10 years it's the second-worst month
- Cable finished the year on the lows and there are signs that specs are piling into shorts after Weale tilted dovish. Jan and Feb are the two worst months for the pound over the past 30 years
- January 2016 forex seasonal trade #2: A glittering start to the year
- January 2016 forex seasonal trade #3: Euro winter blues
