Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Monthly Forex Seasonality - December 2021: US Dollar Typically Slips into Year-End

Monthly Forex Seasonality - December 2021: US Dollar Typically Slips into Year-End

What's on this page
Advertisement

December FX Seasonality Overview:

  • The last month of the year tends to see the greenback fall across the board, while gold and US equities have gained ground recently.
  • December is the second best month of the year for gold prices in recent history.
  • The risk-on attitude is pervasive, with the Australian, Canadian, and New Zealand Dollars tending to rally into year-end.
Top Trading Opportunities in this Quarter
Top Trading Opportunities in this Quarter
Recommended by Christopher Vecchio, CFA
Get Your Free Top Trading Opportunities Forecast
Get My Guide

The beginning of the month warrants a review of the seasonal patterns that have influenced forex markets over the past several years. For December, our focus is on the trailing 5-year and 10-year performances, both of which fully capture trading during the era of quantitative easing and expanding government deficits since the 2008/2009 Global Financial Crisis – not dissimilar from the environment we find ourselves in during the coronavirus pandemic recovery.

Monthly Forex Seasonality Summary – December 2021

Forex for Beginners
Forex for Beginners
Recommended by Christopher Vecchio, CFA
Forex for Beginners
Get My Guide

Forex Seasonality in Euro (via EUR/USD)

December is a bullish month for EUR/USD, from a seasonality perspective. Over the past 5-years, it has been the second best month of the year for the pair, averaging a gain of +1.14%. Over the past 10-years, it has been the third best month of the year, averaging a gain of +0.48%.

Forex Seasonality in British Pound (via GBP/USD)

December is a bullish month for GBP/USD, from a seasonality perspective. Over the past 5-years, it has been the fourth best month of the year for the pair, averaging a gain of +0.76%. Over the past 10-years, it has been the third best month of the year, averaging a gain of +0.29%.

Forex Seasonality in Japanese Yen (via USD/JPY)

December is a mixed month for USD/JPY, from a seasonality perspective. Over the past 5-years, it has been the fifth worst month of the year for the pair, averaging a loss of -0.58%. Over the past 10-years, it has been the sixth best month of the year, averaging a gain of +0.28%.

Forex Seasonality in Australian Dollar (via AUD/USD)

December is a slightly bullish month for AUD/USD, from a seasonality perspective. Over the past 5-years, it has been the third best month of the year for the pair, averaging a gain of +1.18%. Over the past 10-years, it has been the sixth best month of the year, averaging a loss of -0.03%.

How to Trade AUD/USD
How to Trade AUD/USD
Recommended by Christopher Vecchio, CFA
How to Trade AUD/USD
Get My Guide

Forex Seasonality in New Zealand Dollar (via NZD/USD)

December is a very bullish month for NZD/USD, from a seasonality perspective. Over the past 5-years, it has been the third best month of the year for the pair, averaging a gain of +1.38%. Over the past 10-years, it has been the second best month of the year, averaging a gain of +1.18%.

Forex Seasonality in Canadian Dollar (via USD/CAD)

December is a slightly bearish month for USD/CAD, from a seasonality perspective. Over the past 5-years, it has been the fourth worst month of the year for the pair, averaging a loss of -0.84%. Over the past 10-years, it has been the fourth worst month of the year, averaging a gain of +0.14%.

Forex Seasonality in Swiss Franc (via USD/CHF)

December is a bullish month for USD/CHF, from a seasonality perspective. Over the past 5-years, it has been the worst month of the year for the pair, averaging a loss of -1.67%. Over the past 10-years, it has been the third worst month of the year, averaging a loss of -0.80%.

Forex Seasonality in US S&P 500

December is a mixed month for the US S&P 500, from a seasonality perspective. Over the past 5-years, it has been the fifth worst month of the year for the index, averaging a gain of +0.04%. Over the past 10-years, it has been the fifth worst month of the year, averaging a gain of +0.19%.

Forex Seasonality in Gold (via XAU/USD)

December is a bullish month for gold (XAU/USD), from a seasonality perspective. Over the past 5-years, it has been the second best month of the year for the precious metal, averaging a gain of +3.11%. Over the past 10-years, it has been the fifth worst month of the year, averaging a loss of -0.02%.

The Quiz
Discover what kind of forex trader you are
Start Quiz

--- Written by Christopher Vecchio, CFA, Senior Strategist

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES