EUR/CAD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -37 and the Canadian Dollar scores -16 — a gap of 21 points in favour of the Canadian Dollar. The widest divergence is in commodities, which favours the Euro. 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
-21.2
Stronger side
CAD
Edge is
Widening
Scores
-37 vs -16
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 | -51 | -25 | -26.0 |
| Growth | — | -5 | +4.9 |
| Positioning | -43 | -26 | -17.2 |
| Risk Mood | -0 | +32 | -31.7 |
| Commodities | — | -44 | +44.4 |
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