EUR/GBP: the macro gap
On the Macro Currency Strength Meter, the Euro scores -37 and the British Pound scores -7 — a gap of 30 points in favour of the British Pound. The widest divergence is in positioning, which favours the British Pound. All else equal that gap is a fundamental tailwind for the British Pound against the Euro — though markets may already have priced much of it in.
Strength gap
-29.6
Stronger side
GBP
Edge is
Narrowing
Scores
-37 vs -7
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus GBP.
| Factor | EUR | GBP | Gap |
|---|---|---|---|
| Interest Rates | -51 | -35 | -16.6 |
| Positioning | -43 | +20 | -63.5 |
| Risk Mood | -0 | +11 | -10.6 |
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