Seasonal Forex is the term used for some of the tendencies that currency movements may appear in certain directions during certain times of the year. Are there any seasonal patterns influenced the Forex markets? For example, if the US dollar showed statistical tendencies to increase in value during the month of March over a sample of the past, then we can say that he has a seasonal tendencies. Many studies have been conducted on the seasonal Forex, though, who you may wonder whether it is worth it. In this article, we will look at what was said there was no seasonal behavior of currencies emerged from the study of data from 36 years ago, and explain what the reason may be reasonable for any of these trends. I will conclude the interpretation weakness in such studies, and wondering whether it is possible to rely on these results do not hope, and if it is, how it can be exploited in the manner optimized by Forex traders Ktoukat seasonality in order to achieve profits.
Forex seasonal tendencies
If we look at a large sample of data, you may be able to identify some of the seasonal behavior of currencies. The larger scale of the data available to me was by looking at the US dollar index and other major currencies against the US dollar during the period of more than 35 years. Many of the seasonal tendencies can Thdidaha clearly.
US Dollar Index tends to strong performance in January, and down significantly in the last quarter of the year, in fact the beginning of September.
Acting in both the euro and the British pound and the Swiss franc in a manner almost identical, and opposite to the US dollar index: where the weak performance during the month of January and Ervaton of September until the end of the calendar year.
Japanese yen rises from August to October. And it tends to be weakest performance during the month of January and the best is through September.
The Canadian dollar more random, where his performance is weakest during the months of July and November, and stronger during June.
Interpretation of seasonal trends in Forex
Which clearly emerges from this assessment is the end of the year that could be used in the seasonal effect of expectations: the US dollar falls with the approaching end of the year, and then kicks off in January with the beginning of the new year, and the other currencies as opposed to this move. Is there a rational explanation for this seasonal behavior? Yes, as the end of the year it provides a "Aapth tendencies" in addition to being the deadline for taxes and reporting. The money managers and investment funds usually report on their performance during the calendar year, which means that the losers will try hard to win, and winners will be strongly trying not to lose more money with the approaching end of the year. It is possible for this to increase fuel strong patterns, and there's an old saying among traders say that December is either too poor or too great to achieve profits in the market.
You should not ignore the subject of taxes, since taxes on profits and losses to accumulate in the United States and many other countries, the end of the year. As many of the systems allows losses erased losses against the profits of the previous year, there may be the most important reason for those with positions that they lost to liquidate these positions before the end of December, and then reacquired in January, although the transaction costs. Among the currencies under review, the only commodity-linked currency is the Canadian dollar, which is linked to very positively with the price of crude oil. But the industrial use of crude oil far beyond any personal use, and therefore can not be expected that the winter has been no impact seasons, and in fact has no effect. I do not see any evidence based on this study of the seasonal behavior of currencies.
Curriculum weakness
By enthusiasm about the potential advantages for seasonal effects that we Ptodahaa In this study, we were wondering whether this information is convincing enough to use in our expectations of seasonal and confident. There are two areas in particular, be aware of:
1. Measured currencies, except the US dollar index, measured only against the US dollar, and is not burdened with a basket of currencies versus a range of currencies.
2. Although we look at the more than 35 years of data, is still unknown whether this data is sufficient to give a true representation and meaningful. The majority of the financial statistics say that there is a need for at least 200 samples, and we do not have to 35.
To take advantage of seasonal
Should not be seasonal is the basis of any strategy deliberative and I will never be any seasonal expectations. But there is evidence that the end of the calendar year has a tendency to produce directionality movement, while the summer months tend toward the absence of this movement. Style traders can take advantage of seasonal by putting more weight on the trading pattern, which lies with the approaching end of the year, and vice versa, the volume setting in less Altdullac carried out during the summer. Can do this without the questionable guardian expectations about exchange rate