GBP/NZD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -28 and the New Zealand Dollar scores +20 — a gap of 48 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 British Pound — though markets may already have priced much of it in.
Strength gap
-47.5
Stronger side
NZD
Edge is
Widening
Scores
-28 vs +20
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus NZD.
| Factor | GBP | NZD | Gap |
|---|---|---|---|
| Interest Rates | -31 | +27 | -58.0 |
| Positioning | -48 | -5 | -42.1 |
| Risk Mood | +5 | +24 | -19.5 |
| Commodities | — | +33 | -33.3 |
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