DXY Braces for Volatility Amid NFP Release
The US dollar index (DXY) has been experiencing increased volatility in recent times. The September seasonality analysis by FOREX.com suggests that while directionally there is little to no edge for the US dollar, the month typically sees elevated volatility.
Average September returns are minimal at 0.1%, with a slight advantage to bulls due to a 56% win rate. However, this does not translate into strong directional bias, as positive and negative returns are relatively balanced. The standout feature of September's seasonality is its high level of volatility, with an average high-to-low range of 3.8%.
The analysis also examines the impact of nonfarm payrolls (NFP) on the US dollar index. While NFP itself has produced an average return of -0.01%, it tends to increase volatility ahead of and during the event, with a high average daily range of 0.77%.