Lower targets across the cyclical G10 FX space for Q4 – Credit Suisse

Analysts at Credit Suisse extend their bearishness across the cyclical G10 FX spectrum for Q4. They now target 0.62 in AUD/USD (prev. 0.6550), 1.42 in USD/CAD (prev. 1.30), 10.70 in EUR/NOK (prev. 10.00) and 11.30 in EUR/SEK (prev. 10.80).

Extension of the bearish trend in Q4

“Looking ahead into Q4, our core view is that the theme of FX underperformance vs the USD has space to play out further in the cyclical G10 space. As such, we now set our Q4 targets at 0.62 in AUD/USD, 1.42 in USD/CAD, 1.17 in AUD/NZD, 0.53 in NZD/USD, 10.70 in EUR/NOK and 11.30 in EUR/SEK.” 

“Along with the theme of broad divergence vs the USD, we also anticipate realized volatility to stay elevated in Q4, which leads us to set wider trading range for these pairs. Specifically, we now see AUD/USD trading between 0.67 and 0.60 in Q4, we see USD/CAD in a 1.3250-1.43 range, AUD/NZD between 1.13 and 1.19, EUR/NOK in a 10.00-10.90 range and EUR/SEK between 10.65 and 11.40.”