To find out how many Canadian dollars traders can get for each sterling pound, they will check the GBP/CAD Spot price.
The pound and the Canadian dollar are the fourth and seventh most-traded currencies in the world and both are referred to as 'majors' of the fx markets.
Sterling is the third most popular money as a reserve currency and also forms one part of the International Monetary Fund's (IMF's) Special Drawing Rights.
Economic reports measuring the UK's growth, unemployment levels and trade tend to have an effect on the currency's price, as well as the interest rate set by the Bank of England and any other major fiscal policy changes, such as the introduction of quantitative easing measures.
A key issue in recent years has been the level of debt held by countries worldwide and the austerity cuts imposed by the Conservative-Liberal Democrat coalition government certainly affected the value of sterling.
While a weak pound has several negative consequences, it can lead to more competitive exports for the country, which has the potential to strengthen the money.
In comparison, the Canadian dollar is heavily influenced by the price of oil - due to the amount it exports - and is often referred to as a petrocurrency.
Traditionally a strong money, many traders will go to it as a safe haven in times of uncertainty.
The Canadian dollar is also affected by economic reports and the fluctuation of commodities it exports.
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