August seasonal trade trends

<p>In late-June I highlighted that seasonals for stock markets were strong for July and that's exactly what took place, including a 13-day rally in Dow Jones Industrial Average.</p><p>That chapter is closing and it's time to turn the page to August so here are some seasonal highlights:</p><ul><li>Worst month for the German DAX</li><li>Worst month of the year for AUD/JPY (by far) and the yen is generally strong</li><li>Worst month for AUD/USD</li><li>Worst month for copper</li><li>EUR/USD neutral</li><li>Second-best month for gold</li><li>Second worst month for Nikkei</li><li>Neutral for the Nasdaq</li><li>Worst month for NZD/USD</li><li>Fourth-worst month for the S&amp;P 500</li><li>Best month for 10-year bonds (i.e. falling yields)</li><li>Worst month for USD/JPY, though the pair was strong last year</li></ul><p>Looking further ahead, last year could be instructive. Stock markets rallied through mid-August before peaking on 16th followed by a sharp reversal. September is the worst month for the S&amp;P 500 and also starts a three-month run of seasonal weakness for oil.</p>

This article was written by Adam Button at www.forexlive.com.