January remains in history. CHF weakest, ZAR and CAD best in performance

From seasonal point of view, we had an unusual January, followed by an unusual December. Risk assets were heavily hit in December, which is generally a strong month but bounced back in January, which is usually a quiet period. This is an example that tracking seasonality in the markets is just part of the larger puzzle.

We observe that the Swiss franc is the weakest to its competitors: the US dollar, the euro, the yen, the Australian dollar, the Canadian dollar, the pounds and the Polish zloty. In preference to the risk assets that devaluated December sales, the Swiss franc lagged behind as safe safe asset and, accordingly, investors redirected their cash flows to risky instruments such as stocks and indices.

The Canadian dollar was the best performing currency against the US dollar, the euro, the yen, the Australian, the pounds and the kiwi. Growth in oil prices has also had a beneficial impact on the Canadian currency. In the cosmetic aspect, the South African ran the best against the US dollar. The retention of interest rates in the Republic of South Africa and sound economic performance contributed to the strength of the currency.

I have to mention another tool that is not mentioned here. Gold. As always, it remained fashionable for every beginning of the year to be bought. Gold has risen 3.2 percent this month and is up 8 percent since last December.

Looking ahead, February is also a strong month for gold, but keep in mind that in the first half of the month is China’s Moonlight New Year, and gold is declining during this period.

Oil is generally weaker in January, but especially this month is quite strong. Fundamental and seasonal strong moments for “black gold”.