Pound Sterling / Canadian Dollar - GBP/CAD

From the beginning of 2000 to the beginning of 2007, the fluctuations of the GBP/CAD cross alternated bullish and bearish trends that did not exceed +/-20% on the whole period.

The increase of the world oil exchange rates  did not manage to make the one or the other trend last more than a year, insofar as both currency structurally depend on the level of these rates (an important part of the British and Canadian GDP is linked to the oil exports). 

From an exchange value GBP/CAD = 2,37 in December 1999, a decrease happened until GBP/CAD = 2,09 in September 2000, then an increase to GBP/CAD = 2,27 in March 2001 was soon compensated at GBP/CAD = 2,09 in July 2001.

Then, the Pound sterling appreciated until GBP/CAD = 2,51 in December 2002. Then we had the cross (after a new bearish trend) at GBP/CAD = 2,17 in September 2003, at GBP/CAD=2,50 in July 2004, at GBP/CAD = 2,00 in February 2006, and to finish at GBP/CAD = 2,32 in February 2007.

From February 2007 and following the depreciation of the Pound sterling against the US dollar with the world financial and stock-exchange crisis as background, the Pound depreciated again against the Canadian dollar; this depreciation was not compensated by the depreciation of the Canadian dollar against the US dollar, but it was quite weakened.

The depreciation of the Pound Sterling against the CAD lasted until February 2009 at GBP/CAD = 1,75.

So the Pound sterling fell by a « classic » 20% extended on 2 years against the CAD, at the same time the Pound sterling (and even faster) fell by 36% against the USD ( the CAD was also falling against the USD).

After an adjustment during the second quarter of 2009 in favor of the Pound sterling (GBP/CAD = 1,9 in June 2009), the low value of GBP/CAD = 1,7425 (a nearly “lower”) was registered at the beginning of December 2009.

We have to say that the Pound had fallen again against the US dollar during the Summer 2009.