USD/CAD: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores -3 and the Canadian Dollar scores -16 — a gap of 13 points in favour of the US Dollar. The widest divergence is in positioning, 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
+12.8
Stronger side
USD
Edge is
Narrowing
Scores
-3 vs -16
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 | -29 | -25 | -3.8 |
| Growth | +15 | -5 | +19.7 |
| Positioning | +40 | -26 | +66.3 |
| Risk Mood | -32 | +32 | -63.4 |
| Commodities | — | -44 | +44.4 |
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