Dollar’s December doldrums

Heads away for Christmas

The USD has strong reasons for USD weakness heading into year end.The USD tends to see outflows in December and inflows in January due to taxation issues. It is a pattern that has repeated itself over the last 50 years and you can see the outflows here in December below.

Heads away for Christmas 

In December large US companies move money to daughter companies to save taxes.In January the money comes back into the US. This pattern is solid and here is the seasonal outline over the last 25 years. So this would favour further falls in the DXY heading into year end. 

Dollar