GBP/NZD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -18 and the New Zealand Dollar scores +6 — a gap of 24 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 British Pound — though markets may already have priced much of it in.
Strength gap
-24.3
Stronger side
NZD
Edge is
Widening
Scores
-18 vs +6
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus NZD.
| Factor | GBP | NZD | Gap |
|---|---|---|---|
| Interest Rates | -33 | +11 | -44.0 |
| Positioning | -12 | -26 | +13.3 |
| Risk Mood | +6 | +32 | -25.2 |
| Commodities | — | +16 | -16.0 |
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