GBP/CAD – Anglosphere’s most popular minor FX pair

GBP/CAD is a minor forex pair. It represents the exchange rate between the British pound (£) and the Canadian dollar ($). The former is also known as the pound sterling, sterling, or just pound, and the latter is sometimes called a loon.

For easier differentiation from the US dollar, CAD is also sometimes abbreviated to Can$, CA$, or C$. Both the GBP and CAD belong to the five most significant reserve currencies globally.

GBP/CAD falls under the minors category in forex trading.Traders use this group for currency pairs from major world economies that don’t include the USD. As such, this group has twelve pairs in total:

• EUR/GBP – Euro/British Pound
• EUR/CHF – Euro/Swiss Franc
• EUR/JPY – Euro/Japanese Yen
• GBP/JPY – British Pound/Japanese Yen
• CHF/JPY – Swiss Franc/Japanese Yen
• AUD/JPY – Australian Dollar/Japanese Yen
• CAD/JPY – Canadian Dollar/Japanese Yen
• NZD/JPY – New Zealand Dollar/Japanese Yen
• AUD/NZD – Australian Dollar/New Zealand Dollar
• AUD/CHF – Australian Dollar/Swiss Franc
• GBP/CHF – British Pound/Swiss Franc
• CAD/CHF – Canadian Dollar/Swiss Franc

Here, we’ll cover the basic info forex traders need to acquaint themselves with the GBP/CAD pair.

GBP/CAD price calculation

As most forex traders know, every pair consists of two currencies. The first is called the base currency (in this case, GBP), and the second is the quote currency.

Since the pair’s value represents the exchange rate between the two currencies, it rises when the base currency outperforms the quote currency. So, when GBP has a stronger performance than CAD, the pair value goes up. Conversely, if CAD is stronger, the value will slump.

GBP – General info and key reports

The British pound is the currency used in the constituent countries of the United Kingdom and its nine associated territories. It’s the fourth most traded currency in the world, overtaken by USD, EUR, and JPY. Similarly, it’s the fourth most-held currency in global reserves. It’s also the oldest currency in the world when we look at continual use.

The subunit of the pound is the penny (plural: pence, symbol:p). The penny’s common coins are 1p, 2p, 5p, 10p, 20p, 50p. The most common banknotes for the pound are £5, £10, £20, £50. The central bank in charge of dictating monetary policy regarding the sterling is the Bank of England. The minter is Royal Mint, and the printer De La Rue.

As forex traders know, reports are perhaps the most significant regular drivers of forex pair value. Here, we’ll outline five key reports for the GBP:

• Gross Domestic Product (GDP) Report, 2 months after the quarter ends – Office for National Statistics (ONS): Primary benchmark for total economic output.
• Consumer Price Index (CPI) Report, monthly, usually around the third week after the reference month – ONS: Primary real inflation indicator.
• Unemployment Rate & Labour Market Report, monthly, typically six weeks after the reference period – ONS: Primary employment data.
• Bank of England (BoE) Monetary Policy Summary & Interest Rate Decision, every six weeks (8 times per year) – BoE: Shows future intent for the Bank of England.
• Trade Balance Report, monthly, usually six weeks after the reference period – ONS: Export and import summary.

For the GBP in particular, it’s also important to note that reports from smaller entities that use the currency, like constituent country governments, can have a noticeable impact.

CAD – General info and key reports

The Canadian dollar is Canada’s national currency. It’s the fifth most-held currency in global reserves.

The subunit (1/100) of the Canadian dollar is the cent. It’s minted in coins, with the most common being 5¢, 10¢, and 25¢. Other coins are also worth mentioning. For instance, 1¢ is legal tender, although it’s been discontinued, and 50¢ is still minted, although it’s rare. The Canadian dollar is minted as coins ($1, $2), and banknotes ($5, $10, $20, $50, $100). Canada’s central bank is the Bank of Canada, its currency is minted by Royal Canadian Mint and printed by Canadian Bank Note Company.

CAD’s key reports are:

• Gross Domestic Product (GDP) Report, monthly, with a more detailed quarterly report – Statistics Canada:Primary benchmark for total economic output.
• Consumer Price Index (CPI) Report, monthly, released around the third week of the following month – Statistics Canada: Primary real inflation indicator.
• Unemployment Rate & Labour Force Survey, monthly, usually released on the first Friday of each month – Statistics Canada: Primary employment data.
• Bank of Canada (BoC) Interest Rate Decision & Monetary Policy Report, 8 times per year (every 6 weeks) – BoC: shows future intent for the Bank of Canada.
• Crude Oil Inventories & Trade Balance Report, weekly oil reports from the EIA, and monthly trade balance data from Statistics Canada – Statistics Canada & U.S. Energy Information Administration (EIA): Oil price fluctuations have a significant impact on CAD since it’s a major export. The report shows oil trade balance data.

Trading times for GBP/CAD

While the forex market is open 24/5, the GBP/CAD pair sees more activity during certain periods. The most common trading time is the UK market time, 7 AM – 4 PM GMT. The pair sees the highest activity in the UK-US overlap 12 PM – 4 PM. Additionally, another time for traders to watch out for is the opening of the Canadian market, 2:30 PM GMT.

GBP/CAD recent developments

To give you an idea of practical performance and real drivers, we’ll outline key recent news for GBP/CAD.

BoE Keeps Interest Rates Steady

In an 8-to-1 vote in the Monetary Policy Committee (MPC), the BoE has decided to keep its rates flat at 4.5%. The one member opposed to the decision proposed a 25 bps rate cut to 4.25%.

UK Economy Shrinks

The UK economy has shrunk by 0.1% in the first quarter of 2025. This has failed expectations of 0.1% growth, which retracted from previous predictions of a 0.4% increase. There’s limited room for monetary easing, with inflation stalling as well.

US Tariffs & Forecast

Both GBP and CAD are being affected by US tariff policy, especially with the deadline approaching. While the UK’s officials are still debating the possible impact, Canada’s economy has been pressured by the eventual tariffs since they were announced.

With the deadline approaching on the 2nd of April, CAD faces a lot of pressure and further uncertainty due to US trade policies.

Even so, GBP/CAD seems more stable than other FX pairs. Through 2025, the pair is expected to range between 1.863257 and 2.11, leading to an expected average of 2.02.

Disclaimer: This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.