Seasonality in Forex markets refers to the tendency for currency pairs to exhibit predictable price movements during specific times of the year due to various factors like economic cycles, holidays, or geopolitical events. These patterns arise from recurring market behaviors that occur regularly at certain times, influenced by factors such as trade flows, fiscal year-end considerations, or major global events. Common examples include: 1. End-of-year effects: Trading volumes tend to drop in December, leading to less volatile but more predictable trends. 2. Quarterly and fiscal year cycles: Some currencies, like the Japanese yen or Canadian dollar, often experience seasonal trends linked to economic reports or commodity price fluctuations (e.g., oil for the CAD). 3. Holiday periods: Currency pairs may experience reduced liquidity during major holidays, like Christmas or New Year, leading to either increased volatility or sideways movement. Traders use seasonal patterns to anticipate potential market movements, often by analyzing historical data to spot recurring trends during specific months or periods of the year. However, while seasonality can provide valuable insights, it’s important to remember that these patterns don’t guarantee future performance, and other factors like global news or economic shifts can override seasonal trends. #firstdealofthenewyearFateema