As we head into Q4, the global spirit of central bank interventionism has imposed tremendous losses on the macro “bears” particularly in the EU’s case, as a EUR bear squeeze ruined the best trend going in FX in September, says John Hardy, Head of FX Strategy in Saxo Bank's Q4 Outlook.

In Q4, the QE effect may continue to fade. If not, we could get an unconvincing rally in risk currencies and sidewise action in the USD that merely delays the scenario until Q1, but that’s not the preferred scenario as the pressures of reality are mounting on central banks and policymakers to solve the issues at hand.

See more of John Hardy's daily commentary on TradingFloor.com: http://www.tradingfloor.com/traders/john-j-hardy