EUR/NZD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -28 and the New Zealand Dollar scores +6 — a gap of 34 points in favour of the New Zealand Dollar. The widest divergence is in interest rates, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the New Zealand Dollar against the Euro — though markets may already have priced much of it in.
Strength gap
-34.1
Stronger side
NZD
Edge is
Holding steady
Scores
-28 vs +6
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus NZD.
| Factor | EUR | NZD | Gap |
|---|---|---|---|
| Interest Rates | -58 | +11 | -69.2 |
| Positioning | -2 | -26 | +23.6 |
| Risk Mood | -0 | +32 | -31.5 |
| Commodities | — | +16 | -16.0 |
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