Seasonality In 2022; What is the best day-of-the-week to buy the USD? – BofA

Bank of America Global Research discusses the seasonality trade for the USD in 2022.

“The DXY has gained around 8% year-to-date. We find the USD has made most (4.1%) of its gains in 2022 on Thursdays and Fridays. Cumulative USD return for Thursdays and Fridays was respectively 1.9% and 2.2%. At the same time, the US equity market has sold-off the most on Thursdays and Fridays. Cumulative loss for Thursdays has been -10.6% and for Fridays -7.9%,” BofA notes.

” In our view, investors
are more reluctant to hold risky assets over the weekend due to (1) the
on-going war in Europe, (2) the withdrawal of central bank liquidity
increasing “price gap” risks, which supports demand for the USD,” BofA adds.

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