The GBP/CAD pair is not a major nor a commodity pair, despite the fact that the GBP is indeed a major currency. The CAD on the other hand is not though, and while it is a commodity currency, the GBP is not.
The oldest national currency still in use today, the GBP is indeed one of the top 4 currencies in the world in several regards. It is among the most popular reserve currencies and it is one of the most traded currencies on the Forex markets too. The GBP is one of the strongest-valued currencies in the world. Its strength stems from the massive British economy as well as from the extended network of trade partnerships the UK maintains. The country trades with some of the strongest economies in the world, like Germany, the US, France and the Netherlands.
The Canadian Dollar was introduced to replace the Canadian Pound, and to bring the country more in-line with its biggest trading partner and closest neighbor: the US. This effort saw attempts to melt the CAD into the USD at certain points in the past, but the two currencies have remained distinct. The CAD is controlled by the Bank of Canada, Canada’s central bank.
The currency draws its value/strength from its sturdy, commodity export-based economy. The US is the primary destination of Canada’s exports, up to 25% of which is made up of various forestry products, crude oil and base metals.
Through the colonial link between the two countries, the GBP used to be rather tightly linked to the CAD. These days though, this connection is much looser. The CAD is more closely correlated with the USD, thus the state of the US economy is one of the major factors influencing the evolution of the GBP/CAD pair.
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