NZD/CHF: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores -4 and the Swiss Franc scores -43 — a gap of 39 points in favour of the New Zealand Dollar. The widest divergence is in risk mood, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the New Zealand Dollar against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
+38.8
Stronger side
NZD
Edge is
Widening
Scores
-4 vs -43
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus CHF.
| Factor | NZD | CHF | Gap |
|---|---|---|---|
| Interest Rates | +10 | -45 | +55.3 |
| Positioning | -42 | -31 | -10.1 |
| Risk Mood | +53 | -53 | +105.8 |
| Commodities | -39 | — | -39.1 |
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