Understanding the Seasonal Pattern of USD Weakening in April and Strengthening in May
Seasonal Influence on FX Markets
Société Générale notes a consistent seasonal pattern in FX markets, observing a trend where the US dollar tends to weaken in April and recover in May.
Historical USD Performance
Analysis of the past two decades reveals that the dollar index typically experiences a slight downturn in April, followed by a more substantial recovery in May.
Conclusion
The seasonal trend of the US dollar's performance, with a downturn in April and a stronger rebound in May, highlights the importance of considering seasonal factors in FX market analysis. Investors and traders might benefit from adjusting their strategies based on this historical pattern to capitalize on the expected movements of the dollar index during these months.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.