MUFG Research discusses EUR/USD seasonal outlook in December. 

EUR/USD has now rebounded by nine big figures since reaching a trough on 28th September and following Powell’s dovish speech on 30th November, the momentum remains firmly in favour of higher EUR/USD. There is also a strong seasonal bias to be mindful of in December," MUFG notes.

"In the last ten years, EUR/USD has gained on eight occasions in December, by an impressive average of 1.5%. Over a twenty-year period, EUR/USD has gained on 14 occasions. This could be a reflection of position squaring ahead of year-end. On average over these periods, market participants have run EUR short positions. That influence could be powerful this year given the scale of long dollar positioning given the huge move in 2022. That said, the EUR/USD gains in October and November may mean this has already started," MUFG adds.