USD/CHF: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores +6 and the Swiss Franc scores -40 — a gap of 46 points in favour of the US Dollar. The widest divergence is in positioning, which favours the US Dollar. All else equal that gap is a fundamental tailwind for the US Dollar against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
+45.6
Stronger side
USD
Edge is
Holding steady
Scores
+6 vs -40
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is USD minus CHF.
| Factor | USD | CHF | Gap |
|---|---|---|---|
| Interest Rates | +2 | -46 | +48.1 |
| Growth | +17 | — | +16.8 |
| Positioning | +15 | -43 | +57.8 |
| Risk Mood | -15 | -24 | +9.8 |
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