USD/CAD: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores +4 and the Canadian Dollar scores -20 — a gap of 24 points in favour of the US Dollar. The widest divergence is in positioning, which favours the US Dollar. All else equal that gap is a fundamental tailwind for the US Dollar against the Canadian Dollar — though markets may already have priced much of it in.
Strength gap
+24.3
Stronger side
USD
Edge is
Widening
Scores
+4 vs -20
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is USD minus CAD.
| Factor | USD | CAD | Gap |
|---|---|---|---|
| Interest Rates | +2 | -33 | +35.4 |
| Growth | +4 | -14 | +18.7 |
| Positioning | +31 | -50 | +80.1 |
| Risk Mood | -26 | +26 | -52.6 |
| Commodities | — | -7 | +7.3 |
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