Do you believe in calendar effects?
I mean monday effect, Santa Claus Rally, January effect or Sell in May and go away? Latter is getting actual currently
I think there may be of them can be real because there are economic factors that repeat periodically.
I have read little about calendar effects eg.: here, or here
1.) People go abroad on summer holiday which may cause rising demand for local currencies at the destination.
2.) Hurricanes usually occur during late summer and they may cause increasing oil and distilled pertoleum prices due to the loss in the production of hydrocarbons from the Gulf of Mexico and suspension of refineries on the Gulf Coast.
3.) Multinational companies transfer their profits back to the parent company after the business year is closed. This happens mostly in the same month.
OK, 1 and 3 can rather cause changes in an "uneven" forex pair, where one of the currencies is less frequently used. (eg.: belongs to a small country).
On the other hand such explanations are hard to find for stock prices like Google (see below):
So what do you think?
I mean monday effect, Santa Claus Rally, January effect or Sell in May and go away? Latter is getting actual currently
I think there may be of them can be real because there are economic factors that repeat periodically.
I have read little about calendar effects eg.: here, or here
1.) People go abroad on summer holiday which may cause rising demand for local currencies at the destination.
2.) Hurricanes usually occur during late summer and they may cause increasing oil and distilled pertoleum prices due to the loss in the production of hydrocarbons from the Gulf of Mexico and suspension of refineries on the Gulf Coast.
3.) Multinational companies transfer their profits back to the parent company after the business year is closed. This happens mostly in the same month.
OK, 1 and 3 can rather cause changes in an "uneven" forex pair, where one of the currencies is less frequently used. (eg.: belongs to a small country).
On the other hand such explanations are hard to find for stock prices like Google (see below):
So what do you think?