EUR/USD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -39 and the US Dollar scores +4 — a gap of 43 points in favour of the US Dollar. The widest divergence is in interest rates, which favours the US Dollar. All else equal that gap is a fundamental tailwind for the US Dollar against the Euro — though markets may already have priced much of it in.
Strength gap
-43.2
Stronger side
USD
Edge is
Holding steady
Scores
-39 vs +4
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus USD.
| Factor | EUR | USD | Gap |
|---|---|---|---|
| Interest Rates | -66 | +2 | -68.5 |
| Growth | — | +4 | -4.2 |
| Positioning | -27 | +31 | -57.6 |
| Risk Mood | -0 | -26 | +26.3 |
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