EUR/NZD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -37 and the New Zealand Dollar scores -4 — a gap of 33 points in favour of the New Zealand Dollar. The widest divergence is in interest rates, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the New Zealand Dollar against the Euro — though markets may already have priced much of it in.
Strength gap
-33.0
Stronger side
NZD
Edge is
Holding steady
Scores
-37 vs -4
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus NZD.
| Factor | EUR | NZD | Gap |
|---|---|---|---|
| Interest Rates | -51 | +10 | -61.5 |
| Positioning | -43 | -42 | -1.8 |
| Risk Mood | -0 | +53 | -52.9 |
| Commodities | — | -39 | +39.1 |
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