GBP/CAD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -18 and the Canadian Dollar scores -4 — a gap of 14 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
-13.6
Stronger side
CAD
Edge is
Widening
Scores
-18 vs -4
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 | -33 | -24 | -9.0 |
| Growth | — | -28 | +27.8 |
| Positioning | -12 | +30 | -42.3 |
| Risk Mood | +6 | +19 | -12.6 |
| Commodities | — | -1 | +1.1 |
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