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What are the best trades among the G-10 currencies for November?

Here is their view, courtesy of eFXdata:

SEB Research discusses the best seasonal trades for November.

“Among the many G10 seasonal patterns, the ones that stand out the most are for weaker oil currencies (NOK and CAD) and a stronger USD and SEK. We suggest a seasonal G10 basket for November which is long USD/NOK, USD/CAD and short NOK/SEK,” SEB notes.

In the past five years such a basket would have gained 1.4% per year on average, returned 7.1% in total, with a positive return in all of the past seven years.  However, so far this year, seasonality has been a weaker factor than usual with all the special circumstances due to Covid-19. This also proved to be the case in October when the suggested basket lost 0.2% (-1.4% with the suggested stop-loss strategy),” SEB adds.

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