[GBP/USD] End-of-Month London Fix

1. Introduction

The foreign exchange market is active throughout the day, but certain time frames and dates hold special significance. One such example is the "End-of-Month London Fix." This article explores this monthly anomaly.

2. What is the End-of-Month London Fix?

The End-of-Month London Fix refers to the settlement price of currencies on the last business day of the month in the London market. It particularly focuses on the exchange rate between the British Pound (GBP) and the US Dollar (USD). The London Fix is typically set at 4 PM GMT (London time) and is used by banks and investors worldwide to finalize that day's exchange rates. Since London is the hub of the global foreign exchange market, the rates at this time are considered an international standard. The End-of-Month London Fix is especially important because many investors and corporations use this rate to calculate their monthly earnings and liabilities, potentially influencing overall market trends.

3. How to Navigate the London Fix

This section focuses solely on the London Fix, particularly on end-of-month strategies. Specifically, it examines:

1. Identifying anomalies from statistics

2. Strategies post-London Fix

The analysis is based on data from the past three years.

4. Examination Results