EUR/CAD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -49 and the Canadian Dollar scores -20 — a gap of 29 points in favour of the Canadian Dollar. The widest divergence is in interest rates, which favours the Canadian Dollar. All else equal that gap is a fundamental tailwind for the Canadian Dollar against the Euro — though markets may already have priced much of it in.
Strength gap
-28.9
Stronger side
CAD
Edge is
Widening
Scores
-49 vs -20
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus CAD.
| Factor | EUR | CAD | Gap |
|---|---|---|---|
| Interest Rates | -72 | -25 | -47.5 |
| Growth | — | -14 | +13.5 |
| Positioning | -50 | -44 | -5.2 |
| Risk Mood | +0 | -12 | +11.5 |
| Commodities | — | +7 | -7.1 |
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