NZD/JPY: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores -4 and the Japanese Yen scores +25 — a gap of 29 points in favour of the Japanese Yen. The widest divergence is in risk mood, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the Japanese Yen against the New Zealand Dollar — though markets may already have priced much of it in.
Strength gap
-29.0
Stronger side
JPY
Edge is
Holding steady
Scores
-4 vs +25
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus JPY.
| Factor | NZD | JPY | Gap |
|---|---|---|---|
| Interest Rates | +10 | +52 | -41.8 |
| Growth | — | +22 | -21.9 |
| Positioning | -42 | +46 | -88.0 |
| Risk Mood | +53 | -53 | +105.8 |
| Commodities | -39 | — | -39.1 |
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