Today is Martin Luther King day and seeing how it is a national holiday, I will not be trading the markets. But don’t fret, I still have some FX content that should keep your brains busy until we trade again! Today I’d like to recap a post that was made by Pip Diddy earlier in the month that talked about the seasonal movements for the Dollar in December and January.
Basically, his article talks about how in December, he found that 73% of the time, the Euro had gained an average of 185 pips against the Dollar. However, in the month of January, he found that 73% of the time, the Euro had lost an average of 232 pips against the Dollar. (Read the full article)
So being the Curious George that I am, I decided to see if this pattern was holding true to form this season.
73% of the time, the Euro has gained an average of 185 pips against the dollar during the month of December. This past December, the Euro lost 134 pips against the Buck.
73% of the time, the Euro has lost an average of 232 pips against the dollar during the month of January. It’s halfway through the month and the Euro has lost 264 pips.
So for now it looks like the January trend of the Euro decline vs. the Buck is holding true. We still have the last half of the month coming up so anything can still happen. Will the trend continue or will we see it broken? Dun Dun Dun…….