On Friday morning, the U.S. dollar slightly pulled back from its recent surge, though it remained near the two-year high it’s been flirting with. Historically, January has been a good month for the currency, showing a tendency to strengthen during this time.
By the time markets closed on Friday, the dollar had dipped by 0.4% but was still holding steady around $109 against a mix of other major currencies. This level marks its highest point since November 2022 and reflects the enduring robustness of the dollar.
This January, there’s a 63% chance that the dollar will see positive returns, which makes it the most promising month of the year for gains. Not only does it outperform every other month in terms of median and average gains, but it’s also poised to build on last year’s 7.22% increase in the index, according to data from Renaissance Macro Research.
