EUR/CAD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -28 and the Canadian Dollar scores -4 — a gap of 23 points in favour of the Canadian Dollar. The widest divergence is in interest rates, which favours the Canadian Dollar. 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
-23.4
Stronger side
CAD
Edge is
Holding steady
Scores
-28 vs -4
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 | -58 | -24 | -34.2 |
| Growth | — | -28 | +27.8 |
| Positioning | -2 | +30 | -32.0 |
| Risk Mood | -0 | +19 | -18.9 |
| Commodities | — | -1 | +1.1 |
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