August Proves a Mixed Bag for Major Currency Pairs

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

This trend is not unique to the pound-dollar pairing, as many major currency pairs have historically performed poorly in August.

For example, USD/JPY has averaged a fall of -0.3% in August over the same period, while AUD/USD has traded lower with an average return of -0.6%.

The key question for traders will be how serious Japan and the US are about providing ongoing support to the yen, rather than relying on long-term seasonal tendencies.