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

FXStreet Insights Team FXStreet

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.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.