Currencies // Developed Markets
The GBP/CAD currency pair represents the amount in Canadian dollars which can be purchased with one British pound.
|Max. order size||20,000,000|
The UK pound or sterling (GBP) is the currency of the UK and is the worldâ€™s oldest currency still in use. It is the fourth most traded currency after the US dollar, yen and euro. It is one of the top five reserve currencies held by central banks around the world. The Canadian dollar is also one of the most widely traded currencies in the world, ranking in the top 10 in terms of volume. Like the pound, it is also used as a reserve currency. The UK is one of the most globalised countries in the world. Its economy is heavily service driven. Over three quarters of the workforce have jobs in the services sector. The UKâ€™s main export markets comprise the US, Germany, France, Ireland and the rest of the EU. Its main import markets include Germany, the US, China and the rest of the EU. Canada is a net exporter of oil, which means that the Canadian dollar is one of the currencies affected by the ups and downs in oil prices. The Canadian dollar is considered a play on not only oil prices but other commodities as well, due to its heavy reliance on the export of its mineral resources. With Canadian interest rates high relative to global interest rates over the past 20 years, the Canadian dollar has also attracted a lot of hot money in the form of carry trades.
Factors affecting the value of the pound are economic indicators including the level of interest rates, trade balance, unemployment, price inflation and GDP. The value of sterling is also affected by the prices of coal and oil and other commodities like aluminium, a key component in the small UK automotive industry, as well as other base metal prices. Factors affecting the value of the Canadian currency are economic indicators including the level of interest rates, trade balance, unemployment, price inflation and GDP.