EUR/USD Poised for More Gains in Historically Strong Month

The EUR/USD currency pair has been experiencing gains in recent months, and it may continue to do so in September. Historically, this month has been the second-strongest for EUR/USD performance, with an average return of +0.6% over the last 50+ years.

However, there are some potential risks to consider. With intervention risk rising as USD/JPY approaches 161.00, it may be wise to ignore long-term seasonal tendencies in this case.

The EUR/USD pair is likely to see significant volatility in September due to potential interest rate hikes from both the ECB and the Fed. The pair's performance will also depend on the progress of US-Canada trade negotiations, as any resolution would be a bullish sign for the Loonie.