EUR/GBP: the macro gap
On the Macro Currency Strength Meter, the Euro scores -28 and the British Pound scores -18 — a gap of 10 points in favour of the British Pound. The widest divergence is in interest rates, which favours the British Pound. With both currencies scoring similarly, the fundamental case here is broadly balanced.
Strength gap
-9.8
Stronger side
GBP
Edge is
Narrowing
Scores
-28 vs -18
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus GBP.
| Factor | EUR | GBP | Gap |
|---|---|---|---|
| Interest Rates | -58 | -33 | -25.2 |
| Positioning | -2 | -12 | +10.3 |
| Risk Mood | -0 | +6 | -6.3 |
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