Canadian Dollar - End of the Month Trading Anomaly

August 23, 2007

Did you know that the Canadian dollar has a very unique trading characteristic at the end of every month? According to our statistical analysis, we found that over the past 10 years, USD/CAD tends to fall in the last week of the month with a 95 percent confidence level. A more granular look at the data reveals that this drop is predominately concentrated around the 24th and 25th day of every month. Interested in knowing why this happens?

David Rodriguez, one of my Currency Analysts at DailyFX published this special report on why the Canadian dollar behaves this way. Definitely an interesting read.

Posted in Canadian Dollar, Forex Technicals