How to trade in December?
Volatility of the EUR/USD shows clear seasonal patterns. Usually it is very low during the summer and at the end of the year. In December, coming holidays are not the only reason for this. Most of the bank dealers and fund traders just don't care about the markets in the last month of the year. Their bonuses are calculated as of the end of November and whether they profit or lose in December they won't make more money for themselves. If there is no any major fundamental event, price move in the last month of the year are rather random and accidental. None of the large market participants has the incentive to take huge position unless something very important happens.
Volatility of the EUR/USD shows clear seasonal patterns. Usually it is very low during the summer and at the end of the year. In December, coming holidays are not the only reason for this. Most of the bank dealers and fund traders just don't care about the markets in the last month of the year. Their bonuses are calculated as of the end of November and whether they profit or lose in December they won't make more money for themselves. If there is no any major fundamental event, price move in the last month of the year are rather random and accidental. None of the large market participants has the incentive to take huge position unless something very important happens.