Dollar weak for now, but for how long? - ANZ

FXStreet (Guatemala) - Analysts at ANZ Bank noted the seasonality performance of the Greenback and sight May as a possible turning point in the dollars current weakness.

Key Quotes:

"The USD retracement could pause in May if past seasonality patterns repeat."

"Our seasonality analysis shows that the month of May has tended to favour the USD generally with the DXY up in 9 out of the last 15 years for an average return of +0.5%."

"Among the G10 currencies, GBP shows the greatest tendency to depreciate against the USD (11 out of the last 15 years). The upcoming UK elections on 7 May might exacerbate this seasonality move."

"During the last two elections in May 2005 and 2010, the GBP depreciated by 4.8%. If history is any guide, the GBP could be in for a big fall."

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