EUR/CAD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -39 and the Canadian Dollar scores -9 — a gap of 30 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
-30.2
Stronger side
CAD
Edge is
Holding steady
Scores
-39 vs -9
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 | -66 | -33 | -33.2 |
| Growth | — | -20 | +19.6 |
| Positioning | -26 | +3 | -29.7 |
| Risk Mood | -0 | +15 | -14.6 |
| Commodities | — | +16 | -16.3 |
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