Seasonal Trends In The Forex Market

May: A Very Negative Month for the USD/CAD  

For USD/CAD, the strongest case of seasonality is in the month of May. In eight out of the last 10 years (between 2000 and 2009), the Canadian dollar rallied against the U.S. dollar that month. The only explanation for this price pattern is the seasonality in oil prices. Canada is one of the world’s largest oil producers and therefore Canadian companies tend to be very sensitive to the price of oil. The tendency for oil prices to rise during March and April could have boosted the profitability of Canadian companies, leading to seasonal improvements in economic data

Source: GFT Dealbook