USD/CHF: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores +2 and the Swiss Franc scores -42 — a gap of 44 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 Swiss Franc — though markets may already have priced much of it in.
Strength gap
+43.8
Stronger side
USD
Edge is
Widening
Scores
+2 vs -42
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is USD minus CHF.
| Factor | USD | CHF | Gap |
|---|---|---|---|
| Interest Rates | -28 | -44 | +16.5 |
| Growth | +30 | — | +29.7 |
| Positioning | +35 | -46 | +80.3 |
| Risk Mood | -19 | -32 | +12.6 |
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