The European Currency against the United States Dollar (€/$) –Nickname ‘Fiber’

EURUSD ANALYSIS

The European Currency against the United States Dollar (€/$) –Nickname ‘Fiber’

CENTRAL BANK

ECB

FED

FOREIGN CURRENCY RESERVES

51.373 Million USD

41.901 Million USD

 

EURUSD Preface:

EURUSD is the most liquid pair worldwide. Almost all Forex brokers offer EURUSD at their lowest available spreads (Bid/Ask) and that makes this pair ideal for Forex scalping and algorithmic trading. Additionally, there are many Expert Advisors that trade exclusively EURUSD. Historically, EURUSD is fluctuating in a general range between €/$=0.80 and €/$=1.60. In addition, there is a positive historic correlation between EURUSD and GBPUSD. On the other hand, there is a negative correlation between EURUSD and USDCHF.

 

EURUSD Monthly Statistics:

These are the monthly average returns of EURUSD based on 15 years of daily data.

CALENDAR MONTH

AVERAGE MONTHLY RETURNS

TIMES (↑)

TIMES (↓)

AVERAGE DAILY VOLATILITY

JANUARY

-0.91%

6

9

0.899%

FEBRUARY

-0.13%

8

7

0.847%

MARCH

0.26%

7

8

0.833%

APRIL

0.76%

8

7

0.802%

MAY

-0.64%

6

9

0.884%

JUNE

0.65%

10

5

0.847%

JULY

-0.04%

6

9

0.780%

AUGUST

-0.50%

8

7

0.777%

SEPTEMBER

0.63%

8

7

0.865%

OCTOBER

-0.55%

7

8

0.871%

NOVEMBER

0.48%

8

7

0.869%

DECEMBER

1.69%

9

6

0.786%

 

Best Months to Trade the EURUSD:

()-LONG TRADES

According to data during 2000-2014 the best months to go long on EURUSD are:

→ DECEMBER, with positive average returns +1.69%

→ APRIL, with positive average returns +0.76%

→ JUNE, with positive average returns +0.65%

→ SEPTEMBER, with positive average returns +0.63%

()-SHORT TRADES

According to 2000-2014 data the best months to go short on EURUSD are:

→ JANUARY, with negative average returns -0.91%

→ MAY, with negative average returns -0.64%

→ OCTOBER, with negative average returns -0.55%

→ AUGUST, with negative average returns -0.50%

The United States Dollar against the Japanese Yen ($/¥) –Nickname ‘The Yen’

USDJPY ANALYSIS

The United States Dollar against the Japanese Yen ($/¥) –Nickname ‘The Yen’

CENTRAL BANK

FED

BoJ

FOREIGN CURRENCY RESERVES

41.901 Million USD

1.199.000 Million USD

 

USDJPY Preface:

USDJPY is a very dynamic Forex pair that trades within straightforward long-term cycles. USDJPY is one of the three most liquid Forex pairs worldwide along with EURUSD and GBPUSD. Note that the Bank of Japan holds massive Foreign Currency Reserves worth about 1.2 trillion USD.

 

USDJPY Monthly Statistics:

These are the monthly average returns of USDJPY based on 15 years of daily data.

CALENDAR MONTH

AVERAGE MONTHLY RETURNS

TIMES

(↑)

TIMES

(↓)

AVERAGE DAILY VOLATILITY

JANUARY

0.34%

9

6

0.905%

FEBRUARY

0.80%

8

7

0.865%

MARCH

0.98%

10

5

0.971%

APRIL

0.12%

6

9

0.879%

MAY

-0.57%

5

10

0.884%

JUNE

0.11%

8

7

0.821%

JULY

-0.27%

9

6

0.784%

AUGUST

-1.29%

5

10

0.813%

SEPTEMBER

0.11%

8

7

0.848%

OCTOBER

-0.61%

7

8

0.846%

NOVEMBER

0.45%

8

7

0.817%

DECEMBER

1.11%

9

6

0.782%

 

Best Months to Trade the USDJPY:

()-LONG TRADES

According to data during 2000-2014 the best months to go long on USDJPY are:

→ DECEMBER, with positive average returns +1.11%

→ MARCH, with positive average returns +0.98%

→ FEBRUARY, with positive average returns +0.80%

()-SHORT TRADES

According to 2000-2014 data the best months to go short on USDJPY are:

→ AUGUST, with negative average returns -1.29%

→ OCTOBER, with negative average returns -0.61%

→ MAY, with negative average returns -0.57%

The British Pound Sterling against the United States Dollar (£/$) –Nickname Cable

GBPUSD ANALYSIS

The British Pound Sterling against the United States Dollar (£/$) –Nickname Cable

CENTRAL BANK

BoE

FED

FOREIGN CURRENCY RESERVES

10.135 Million USD

41.901 Million USD

 

GBPUSD Preface:

GBPUSD is one of the three most liquid pairs worldwide along with EURUSD and USDJPY. Historically, GBPUSD shows a positive correlation with EURUSD and negative correlation with USDCHF.

Note: The Bank of England (BoE) holds only 10.135 million USD in Foreign Currency Reserves but the UK Central Government holds 72.092 million USD in Foreign Currency Reserves.

 

GBPUSD Monthly Statistics:

These are the monthly average returns of GBPUSD based on 15 years of daily data.

CALENDAR MONTH

AVERAGE MONTHLY RETURNS

TIMES

(↑)

TIMES

(↓)

AVERAGE DAILY VOLATILITY

JANUARY

-0.09%

6

8

0.824%

FEBRUARY

-0.87%

7

8

0.770%

MARCH

-0.26%

8

7

0.748%

APRIL

1.43%

13

2

0.684%

MAY

-0.56%

4

11

0.737%

JUNE

0.94%

10

5

0.767%

JULY

0.32%

7

8

0.695%

AUGUST

-0.95%

5

10

0.688%

SEPTEMBER

0.48%

9

6

0.761%

OCTOBER

-0.13%

8

7

0.804%

NOVEMBER

-0.47%

5

10

0.801%

DECEMBER

0.36%

6

9

0.748%

 

Best Months to Trade the GBPUSD:

()-LONG TRADES

According to data during 2000-2014 the best months to go long on GBPUSD are:

→ APRIL, with positive average returns +1.43%

→ JUNE, with positive average returns +0.94%

→ SEPTEMBER, with positive average returns +0.48%

()-SHORT TRADES

According to 2000-2014 data the best months to go short on GBPUSD are:

→ AUGUST, with negative average returns -0.97%

→ FEBRUARY, with negative average returns -0.87%

→ MAY, with negative average returns -0.56%

The European Currency (Euro) against the Japanese Yen –Nickname Euppy

EURJPY ANALYSIS

The European Currency (Euro) against the Japanese Yen –Nickname Euppy

CENTRAL BANK

ECB

BoJ

FOREIGN CURRENCY RESERVES

51.373 Million USD

1.199.651 Million USD

 

EURJPY Preface:

EURJPY is one of the most liquid Euro crosses as it combines the popularity of Euro with the exporting excellence of the Japanese economy. EURJPY is a very volatile Forex pair offered by Forex brokers in narrow spreads. The combination of tight spreads and daily volatility makes EURJPY ideal for Forex trading. The Yen is a traditionally low-yielding currency and that makes it suitable for carry traders who sell the Japanese Yen and buy higher-yielding currencies, such is NZD and AUD.

 

EURJPY Monthly Statistics:

These are the monthly average returns of EURJPY based on 15 years of daily data.

CALENDAR MONTH

AVERAGE MONTHLY RETURNS

TIMES

(↑)

TIMES

(↓)

AVERAGE DAILY VOLATILITY

JANUARY

-0.56%

8

7

1.127%

FEBRUARY

0.67%

8

7

1.074%

MARCH

1.19%

11

4

1.093%

APRIL

0.84%

9

6

1.019%

MAY

-1.21%

9

6

1.054%

JUNE

0.70%

10

5

0.974%

JULY

-0.29%

7

8

0.880%

AUGUST

-1.77%

3

12

0.938%

SEPTEMBER

0.64%

10

5

1.017%

OCTOBER

-1.07%

8

7

1.079%

NOVEMBER

0.88%

10

5

1.050%

DECEMBER

2.74%

11

4

0.882%

 

Best Months to Trade the EURJPY:

()-LONG TRADES

According to data during 2000-2014 the best months to go long on EURJPY are:

→ DECEMBER, with positive average returns +2.74%

→ MARCH, with positive average returns +1.19%

→ NOVEMBER, with positive average returns +0.88%

()-SHORT TRADES

According to 2000-2014 data the best months to go short on EURJPY are:

→ AUGUST, with negative average returns -1.77%

→ MAY, with negative average returns -1.21%

→ OCTOBER, with negative average returns -1.07%

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