August Bear: Major Currency Pairs Struggle Historically

The GBP/USD pair has seen its worst monthly performance in August over the past 50+ years, with an average return of around -0.5% since 1971.

This seasonal pattern is not unique to the British pound, as several major currency pairs have historically performed poorly in August.

The USD/JPY pair has also been bearish in this month, falling by an average of -0.3% since the Bretton Woods agreement. The key question for August will be how serious Japan and the US are about providing ongoing support to the yen.