NZD/JPY: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +6 and the Japanese Yen scores +25 — a gap of 18 points in favour of the Japanese Yen. The widest divergence is in risk mood, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the Japanese Yen against the New Zealand Dollar — though markets may already have priced much of it in.
Strength gap
-18.3
Stronger side
JPY
Edge is
Widening
Scores
+6 vs +25
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus JPY.
| Factor | NZD | JPY | Gap |
|---|---|---|---|
| Interest Rates | +11 | +51 | -40.7 |
| Growth | — | +36 | -35.5 |
| Positioning | -26 | +16 | -42.2 |
| Risk Mood | +32 | -32 | +63.0 |
| Commodities | +16 | — | +16.0 |
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