EUR/USD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -37 and the US Dollar scores -3 — a gap of 34 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 Euro — though markets may already have priced much of it in.
Strength gap
-34.0
Stronger side
USD
Edge is
Holding steady
Scores
-37 vs -3
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus USD.
| Factor | EUR | USD | Gap |
|---|---|---|---|
| Interest Rates | -51 | -29 | -22.2 |
| Growth | — | +15 | -14.8 |
| Positioning | -43 | +40 | -83.5 |
| Risk Mood | -0 | -32 | +31.7 |
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