CHF/JPY: the macro gap
On the Macro Currency Strength Meter, the Swiss Franc scores -40 and the Japanese Yen scores +44 — a gap of 84 points in favour of the Japanese Yen. The widest divergence is in positioning, which favours the Japanese Yen. All else equal that gap is a fundamental tailwind for the Japanese Yen against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
-83.6
Stronger side
JPY
Edge is
Holding steady
Scores
-40 vs +44
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is CHF minus JPY.
| Factor | CHF | JPY | Gap |
|---|---|---|---|
| Interest Rates | -46 | +52 | -97.9 |
| Growth | — | +44 | -43.7 |
| Positioning | -43 | +82 | -125.0 |
| Risk Mood | -24 | -24 | +0.0 |
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