CAD/CHF: the macro gap
On the Macro Currency Strength Meter, the Canadian Dollar scores -16 and the Swiss Franc scores -43 — a gap of 27 points in favour of the Canadian Dollar. The widest divergence is in risk mood, 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
+27.0
Stronger side
CAD
Edge is
Widening
Scores
-16 vs -43
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 | -25 | -45 | +19.8 |
| Growth | -5 | — | -4.9 |
| Positioning | -26 | -31 | +5.3 |
| Risk Mood | +32 | -53 | +84.6 |
| Commodities | -44 | — | -44.4 |
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