CAD/CHF: the macro gap
On the Macro Currency Strength Meter, the Canadian Dollar scores -4 and the Swiss Franc scores -42 — a gap of 38 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 Swiss Franc — though markets may already have priced much of it in.
Strength gap
+37.6
Stronger side
CAD
Edge is
Widening
Scores
-4 vs -42
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is CAD minus CHF.
| Factor | CAD | CHF | Gap |
|---|---|---|---|
| Interest Rates | -24 | -44 | +20.1 |
| Growth | -28 | — | -27.8 |
| Positioning | +30 | -46 | +75.4 |
| Risk Mood | +19 | -32 | +50.4 |
| Commodities | -1 | — | -1.1 |
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