January Effect In FX

In Foreign Exchange, the January Effect refers to the general tendency for major currencies pairs to change trend after January 1st.


From stocks to strawberries, the Forex market is a seasonal market like any other. FX in particular has a tendency to reorient established trends after the New Year.

The FX January Effect is generally attributed to money managers' inclination to make long term reassessments of foreign exchange trends that often lead to big shifts in their foreign exchange portfolios in January.



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