EUR/CHF: the macro gap
On the Macro Currency Strength Meter, the Euro scores -28 and the Swiss Franc scores -42 — a gap of 14 points in favour of the Euro. The widest divergence is in positioning, which favours the Euro. All else equal that gap is a fundamental tailwind for the Euro against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
+14.2
Stronger side
EUR
Edge is
Widening
Scores
-28 vs -42
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus CHF.
| Factor | EUR | CHF | Gap |
|---|---|---|---|
| Interest Rates | -58 | -44 | -14.1 |
| Positioning | -2 | -46 | +43.4 |
| Risk Mood | -0 | -32 | +31.5 |
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