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Euro Supporter Credit Suisse Joins Bears: Currencies

Credit Suisse Group AG went against the consensus in June and correctly called the euro’s rally. Now, the bull has turned into a bear, with the firm predicting the common currency’s biggest annual drop in almost a decade.

The euro’s appreciation to its strongest levels against the dollar since 2011 will likely be unsustainable as the monetary policies of the European Central Bank and Federal Reserve separate, strategists at the Swiss lender say. Yields on German bunds have fallen to the lowest in seven years relative to U.S. Treasuries, weighing on the 18-nation euro.