GBP/USD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -7 and the US Dollar scores -3 — a gap of 4 points in favour of the US Dollar. The widest divergence is in risk mood, which favours the British Pound. With both currencies scoring similarly, the fundamental case here is broadly balanced.
Strength gap
-4.4
Stronger side
USD
Edge is
Widening
Scores
-7 vs -3
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus USD.
| Factor | GBP | USD | Gap |
|---|---|---|---|
| Interest Rates | -35 | -29 | -5.6 |
| Growth | — | +15 | -14.8 |
| Positioning | +20 | +40 | -20.0 |
| Risk Mood | +11 | -32 | +42.3 |
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