CAD/CHF: the macro gap
On the Macro Currency Strength Meter, the Canadian Dollar scores -9 and the Swiss Franc scores -40 — a gap of 31 points in favour of the Canadian Dollar. The widest divergence is in positioning, which favours the Canadian Dollar. All else equal that gap is a fundamental tailwind for the Canadian Dollar against the Swiss Franc — though markets may already have priced much of it in.
Strength gap
+31.4
Stronger side
CAD
Edge is
Narrowing
Scores
-9 vs -40
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is CAD minus CHF.
| Factor | CAD | CHF | Gap |
|---|---|---|---|
| Interest Rates | -33 | -46 | +12.9 |
| Growth | -20 | — | -19.6 |
| Positioning | +3 | -43 | +46.1 |
| Risk Mood | +15 | -24 | +39.0 |
| Commodities | +16 | — | +16.3 |
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