EUR/USD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -28 and the US Dollar scores +2 — a gap of 30 points in favour of the US Dollar. The widest divergence is in positioning, which favours the US Dollar. All else equal that gap is a fundamental tailwind for the US Dollar against the Euro — though markets may already have priced much of it in.
Strength gap
-29.6
Stronger side
USD
Edge is
Holding steady
Scores
-28 vs +2
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus USD.
| Factor | EUR | USD | Gap |
|---|---|---|---|
| Interest Rates | -58 | -28 | -30.6 |
| Growth | — | +30 | -29.7 |
| Positioning | -2 | +35 | -36.9 |
| Risk Mood | -0 | -19 | +18.9 |
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