NZD/CHF: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +6 and the Swiss Franc scores -42 — a gap of 48 points in favour of the New Zealand Dollar. The widest divergence is in risk mood, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the New Zealand Dollar against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
+48.3
Stronger side
NZD
Edge is
Widening
Scores
+6 vs -42
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus CHF.
| Factor | NZD | CHF | Gap |
|---|---|---|---|
| Interest Rates | +11 | -44 | +55.1 |
| Positioning | -26 | -46 | +19.8 |
| Risk Mood | +32 | -32 | +63.0 |
| Commodities | +16 | — | +16.0 |
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