USD/CAD: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores +6 and the Canadian Dollar scores -9 — a gap of 14 points in favour of the US Dollar. The widest divergence is in growth, which favours the US Dollar. All else equal that gap is a fundamental tailwind for the US Dollar against the Canadian Dollar — though markets may already have priced much of it in.
Strength gap
+14.2
Stronger side
USD
Edge is
Widening
Scores
+6 vs -9
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is USD minus CAD.
| Factor | USD | CAD | Gap |
|---|---|---|---|
| Interest Rates | +2 | -33 | +35.2 |
| Growth | +17 | -20 | +36.4 |
| Positioning | +15 | +3 | +11.7 |
| Risk Mood | -15 | +15 | -29.2 |
| Commodities | — | +16 | -16.3 |
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