EUR/GBP: the macro gap
On the Macro Currency Strength Meter, the Euro scores -39 and the British Pound scores -14 — a gap of 24 points in favour of the British Pound. The widest divergence is in interest rates, which favours the British Pound. All else equal that gap is a fundamental tailwind for the British Pound against the Euro — though markets may already have priced much of it in.
Strength gap
-24.5
Stronger side
GBP
Edge is
Widening
Scores
-39 vs -14
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus GBP.
| Factor | EUR | GBP | Gap |
|---|---|---|---|
| Interest Rates | -66 | -31 | -35.2 |
| Positioning | -27 | -6 | -20.5 |
| Risk Mood | -0 | +9 | -8.8 |
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