GBP/CAD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -28 and the Canadian Dollar scores -9 — a gap of 19 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 British Pound — though markets may already have priced much of it in.
Strength gap
-19.3
Stronger side
CAD
Edge is
Widening
Scores
-28 vs -9
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus CAD.
| Factor | GBP | CAD | Gap |
|---|---|---|---|
| Interest Rates | -31 | -33 | +2.0 |
| Growth | — | -20 | +19.6 |
| Positioning | -48 | +3 | -50.7 |
| Risk Mood | +5 | +15 | -9.7 |
| Commodities | — | +16 | -16.3 |
Advertisement