CAD/JPY: the macro gap
On the Macro Currency Strength Meter, the Canadian Dollar scores -16 and the Japanese Yen scores +25 — a gap of 41 points in favour of the Japanese Yen. The widest divergence is in risk mood, which favours the Canadian Dollar. All else equal that gap is a fundamental tailwind for the Japanese Yen against the Canadian Dollar — though markets may already have priced much of it in.
Strength gap
-40.8
Stronger side
JPY
Edge is
Holding steady
Scores
-16 vs +25
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is CAD minus JPY.
| Factor | CAD | JPY | Gap |
|---|---|---|---|
| Interest Rates | -25 | +52 | -77.3 |
| Growth | -5 | +22 | -26.8 |
| Positioning | -26 | +46 | -72.6 |
| Risk Mood | +32 | -53 | +84.6 |
| Commodities | -44 | — | -44.4 |
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