Pairing – The amount of Canadian dollars (CAD) that one can buy for every Great British pound (GBP).
GBP – World’s fourth most traded currency
CAD - World’s sixth most traded currency
- Political factors – The British pound has been used as a reserve currency for some time. The main factors that affect the currency are unemployment rates, and trade levels, although austerity measures over recent years and the 2016 Brexit vote result have seen negative impacts on the currency.
- Trade – A weakened pound comes with a safeguard of sorts, as exports become more competitive, which in turn has the ability to strengthen the currency again.
- Commodities – Although the Canadian dollar is affected by economic and political changes in the country, it is mainly the prices of timber, and especially oil that affect the currency, which is why the CAD is often referred to as a petrocurrency. The pound can also be affected by commodities, specifically oil, coal, and aluminium/
- Reserve – Both currencies are seen as healthy safe haven options due to the general stability of the pair