GBP/CAD – Live and Historical Rates
The GBP/CAD is another pairing of a major currency with one that’s not a major. The GBP is obviously the major here. The resulting pair is not a major, nor is it a commodity pair. The above chart illustrates the number of CAD it takes to purchase a GBP.
The British Pound is currently the oldest currency in circulation and it is also one of the strongest currencies in the world. Its strength stems from a unique combination of factors. On one hand, London is indeed the financial capital of the world, on the other, the raw size of the British economy is also massive. The top trading partners of the country are some of the strongest economies in the world too. The UK trades with the US, France, Germany and the Netherlands, and there are moves made towards including China in that fold too.
The Canadian Dollar may not be a proper major, but it is indeed among the most traded currencies in the world. In fact, it is 7th in this regard. The economy backing it is a commodity-based one, which is the 10th biggest in the world. Due to geographical proximity, Canada’s biggest trading partner is obviously the US. In the past, there had been efforts to lock the two countries in a sort of currency union, and the CAD was indeed pegged to the USD a few times. Nowadays though, the two currencies are completely independent.
The GBP and the CAD used to be correlated in the past, given the connection between the two countries. Indeed, to this day, Canada is under the British crown. These days though, the CAD is much more solidly linked to the USD. Therefore, the GBP/CAD is strongly correlated with the EUR/USD.
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