The GBP/CAD currency combination is heavily impacted by the correlation of two important global economies: the United Kingdom and Canada. The pair is nevertheless an ideal tool for diversification for those who are familiar with the GBP/USD pair, yet keen to move beyond the four majors.

The Canadian dollar is the so-called commodity currency since the Canadian economy has an export orientation. The country's economy depends on the export of oil, timber, coal, ferrous and non-ferrous metals. If prices for this product fall, then the value of the dollar decreases, and consequently, the GBP/CAD rate rises. Accordingly, on the contrary: prices are rising, the quote is falling. The most important economic and political news influence in this way: if this data is good for Britain, then the pair quotes grow; if this data improvement occurs in Canada, then the GBP/CAD quotes fall.

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