USD is seasonally strong in May, EUR to weaken

He noted:

  •  Seasonally, May is the best month for the DXY over the past 20 years, averaging a 0.66% gain. it’s risen in May in 9 of the past 11 years.

ANZ note similar, saying this will weigh on the euro.

  • May has typically been the best month for USD performance
  • this may put pressure on the euro, and indeed … “We saw a little taste of that on Friday with the largest one-day fall in EUR in over a year”
  •  strategists including Daniel Been wrote in a note 

Friday’s EUR drop noted below:

Adam posted on the seasonals to watch for this month:  May forex seasonals: The consensus and the conventional wisdom are wrong

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