GBPCAD is a cross-rate currency pair. It consists of the pound (GBP) and the Canadian dollar (CAD), the national currencies of the UK and Canada, respectively. This pair has high volatility and liquidity.
The British pound (GBP) is the official currency of the United Kingdom of Great Britain and Northern Ireland and one of the world's major reserve currencies. The pound is also accepted as legal tender in the British Crown Dependencies and overseas territories. The UK economy is focused on the service sector, industry, and raw materials (oil and gas). The service sector is considered to be the main one, which accounts for almost 30% of GDP, primarily financial, brokerage and banking services, famous offshore companies in the British overseas territories, insurance and consulting services. The UK's main trading partners are the EU and the US.
The pound is also accepted as legal tender in the British Crown Dependencies and overseas territories. The UK economy is focused on the service sector, industry, and raw materials (oil and gas). The service sector is considered the main one, which accounts for almost 30% of GDP, primarily financial, brokerage and banking services, famous offshore companies in the British overseas territories, insurance and consulting services. The UK's main trading partners are the EU and the US. The Canadian dollar (CAD) is the official currency of Canada. The country's economy depends on exporting crude oil, gold, lumber, and raw aluminum. Any significant fluctuations in the prices of these commodities can cause the pair to rise or fall, depending on the economic indicators of each of the countries. The Canadian economy is dependent on the US, which is the largest market for Canadian exports and a supplier of imports.
Therefore, economic shocks in the US will be noticeable in Canada. When trading GBPCAD, it is worth considering that the pair is affected by price changes in other countries. The Canadian dollar rate depends on important economic factors in the US, while the pound correlates with the EU indicators. Therefore, when conducting the GBPCAD fundamental analysis, it is worth considering the economic indicators of the UK and Canada and the US and the Eurozone data. The GBPCAD trading instrument has a strong correlation with GBPUSD and EURUSD. This is evident during the European session.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
