Thursday, November 19, 2009

Seasonality: The Euro Usually Rises In December Versus USD, Average +3.03%

Here is a very interesting chart from the folks at fx360 showing the seasonality patterns of the Euro versus the U.S. dollar. Out of the last 10 years, the Euro has risen in 7 of them.

On average, the Euro has risen 3.03% in the month of December. In the three years in which it dropped, the maximum drop was 0.47%.

This can be likely attributted to repatriation of funds by Europeans. Will this pattern repeat itsef given the near collapse of the USD this year? Time will tell, but the charts indicated the probabilities.

The ETF that tracks the Euro is FXE. We track all currency ETFs live here.

Up or down, that is why we still prefer the straddles.

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