Credit Agricole CIB Research flags EUR, GBP, and CHF as the 3 most overbought currencies in G10 right now.

"All is not well for European currencies, however, and we stick with our view that markets are pricing in excessive divergence between the ECB and BoE on the one hand and the Fed on the other for example. We also note that the EUR, GBP and CHF are now the three most overbought G10 currencies according to our positioning data and that they look overvalued vs the USD according to our short and long-term valuation models," CACIB notes. 

"This suggests that many positives are in the price of the currencies and that they could remain vulnerable to any less-dovish-than expected Fed pivot next week," CACIB adds.