Citi discusses the seasonality trends in G10FX in August.
"August seasonality is most pronounced in global rates and Gold. Yields across US, Canada, Europe and the Antipodeans on average have seen a significant fall in the backend of the curve over the month over the last 20 years, even though seasonality has become less consistent over time. There is little evidence of August seasonality in equities. In spot, there is some evidence of cross-yen and USD upside, but mostly focused on USDEM (e.g. USDZAR, USDMXN) with little consistency in G10 FX," Citi notes.
"We therefore see August seasonality as reflecting mostly poor liquidity conditions and occasional risk events, which amid aspirational valuations and various headwinds are likely to keep investor risk exposures limited and bear risk of temporary corrections this year, too," Citi adds.