EUR/JPY: the macro gap
On the Macro Currency Strength Meter, the Euro scores -49 and the Japanese Yen scores +30 — a gap of 78 points in favour of the Japanese Yen. The widest divergence is in interest rates, which favours the Japanese Yen. All else equal that gap is a fundamental tailwind for the Japanese Yen against the Euro — though markets may already have priced much of it in.
Strength gap
-78.5
Stronger side
JPY
Edge is
Widening
Scores
-49 vs +30
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus JPY.
| Factor | EUR | JPY | Gap |
|---|---|---|---|
| Interest Rates | -72 | +53 | -124.8 |
| Growth | — | +37 | -37.1 |
| Positioning | -50 | -3 | -46.4 |
| Risk Mood | +0 | +19 | -19.2 |
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