GBP/CHF: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -18 and the Swiss Franc scores -42 — a gap of 24 points in favour of the British Pound. The widest divergence is in risk mood, which favours the British Pound. All else equal that gap is a fundamental tailwind for the British Pound against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
+24.0
Stronger side
GBP
Edge is
Narrowing
Scores
-18 vs -42
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus CHF.
| Factor | GBP | CHF | Gap |
|---|---|---|---|
| Interest Rates | -33 | -44 | +11.1 |
| Positioning | -12 | -46 | +33.1 |
| Risk Mood | +6 | -32 | +37.8 |
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