GBP/CHF: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -28 and the Swiss Franc scores -40 — a gap of 12 points in favour of the British Pound. The widest divergence is in risk mood, which favours the British Pound. All else equal that gap is a fundamental tailwind for the British Pound against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
+12.1
Stronger side
GBP
Edge is
Narrowing
Scores
-28 vs -40
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus CHF.
| Factor | GBP | CHF | Gap |
|---|---|---|---|
| Interest Rates | -31 | -46 | +14.9 |
| Positioning | -48 | -43 | -4.6 |
| Risk Mood | +5 | -24 | +29.3 |
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