USD/CHF: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores +4 and the Swiss Franc scores -29 — a gap of 34 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 Swiss Franc — though markets may already have priced much of it in.
Strength gap
+33.7
Stronger side
USD
Edge is
Narrowing
Scores
+4 vs -29
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 | +48.3 |
| Growth | +4 | — | +4.2 |
| Positioning | +31 | +7 | +23.9 |
| Risk Mood | -26 | -44 | +17.6 |
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