USD/CAD: the macro gap
On the Macro Currency Strength Meter, the US Dollar scores +2 and the Canadian Dollar scores -4 — a gap of 6 points in favour of the US Dollar. The widest divergence is in growth, which favours the US Dollar. With both currencies scoring similarly, the fundamental case here is broadly balanced.
Strength gap
+6.2
Stronger side
USD
Edge is
Narrowing
Scores
+2 vs -4
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 | -28 | -24 | -3.6 |
| Growth | +30 | -28 | +57.5 |
| Positioning | +35 | +30 | +4.9 |
| Risk Mood | -19 | +19 | -37.8 |
| Commodities | — | -1 | +1.1 |
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