GBP/CAD

The GBP/CAD is the currency pair encompassing the British pound of the United Kingdom (symbol £, code GBP), and the Canadian dollar of Canada (symbol $, code CAD).

The pair’s rate indicates how many Canadian dollars are needed in order to purchase one pound Sterling.

For example, when the GBP/CAD is trading at 1.8500, it means 1 British pound is equivalent to 1.85 Canadian dollars.

The British pound (GBP) is the world’s fourth most traded currency, whilst the Canadian dollar (CAD) is the world’s seventh most traded currency.

The pair is extremely volatile, but with relatively high spreads, usually between 2 and 6 pips on most forex brokers.

Important economic releases include the Gross Domestic Product (GDP) for Canada, which measures the total value of all goods and services produced by the country.

For the UK, retail sales are one of the major news announcements, and is the most useful report indicating consumer spending.

The GBP/CAD can really move when either of these or other economic releases have higher or lower announcements than expected.

How to Trade GBP/CAD

The GBP/CAD isn’t one of the more prominent forex pairs, and carries with it an element of intrigue, but with an inherent risk not found in the major pairs.

Its daily range throughout 2015 was consistently above 100, and 200 pip days are not uncommon.

Trading this pair successfully is arguably one of the more arduous tasks, even for an experienced forex trader, therefore adhering to a strict set of criteria is essential.

More recently, Brexit talks and the lingering uncertainty of a clean exit from the European Union has also impacted the GBP/CAD, adding even more volatility to the pair.