USD/CHF: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores -3 and the Swiss Franc scores -43 — a gap of 40 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
+39.8
Stronger side
USD
Edge is
Widening
Scores
-3 vs -43
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 | -29 | -45 | +16.0 |
| Growth | +15 | — | +14.8 |
| Positioning | +40 | -31 | +71.6 |
| Risk Mood | -32 | -53 | +21.2 |
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