EUR/USD Faces Volatility as Seasonal Patterns Favor Gains

Historical data suggests that September is the second-strongest month for EUR/USD performance, with an average return of +0.6% over the last 50+ years.

The pair has been on a three-month winning streak, but the upcoming month will likely see significant volatility due to potential interest rate hikes from both the ECB and Fed.

GBP/USD, on the other hand, has historically seen relatively weak monthly performance in September, with average returns of around -0.4% since 1971.

USD/JPY has been falling for years and is expected to continue its downtrend, despite intervention efforts by Japanese authorities.