If you’re sending money between the UK and Canada, here’s a quick guide to what’s happening with the British pound (GBP) and the Canadian dollar (CAD), and what it could mean for your transfers in September 2025.
GBP to CAD: Where It Stands
The Pound to Canadian Dollar (GBP/CAD) rate has been rising in recent weeks, currently hovering near 1.86. It recently tested key resistance at 1.8673 and bounced from strong support around 1.83.
For people looking to send GBP to Canada, it's slightly more favorable now than it was a month ago.
What’s Driving gbp to cad?
Several forces are influencing GBP/CAD right now:
The UK’s central bank, the Bank of England (BoE), cut interest rates but sounded cautious about more cuts. This has kept the Pound surprisingly strong.
On the Canadian side, the Canadian Dollar (CAD) is under pressure due to falling oil prices and trade tensions with China. Slower economic growth and weak job numbers are adding to the strain.
CAD is also being pulled down by weak global demand and uncertainty with the U.S., its largest trading partner.
So, even though the UK economy is showing signs of weakness, Canada's economic and trade challenges are making its currency even weaker, which is why GBP/CAD is climbing.
What Do the Charts Say?
From a technical viewpoint (based on patterns and price levels in the charts):
GBP/CAD recently hit a strong resistance level at 1.8673. This means it might not rise much more in the short term unless strong data or news helps it break higher.
The pair is also showing signs of being “overbought,” a sign that it may experience a small downward correction or pause.
Key levels to watch:
Resistance (a ceiling that could cap gains): 1.8673
Support (a floor that could stop falls): 1.83
Unless major surprises occur, GBP/CAD is expected to remain between 1.83 and 1.8673 for now.
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What to Watch Next Month
Looking ahead, several things might move GBP/CAD in August 2025:
UK data: If upcoming job and GDP reports from the UK are better than expected, the Pound could strengthen further.
Canadian data: Poor employment or trade numbers from Canada may weaken CAD more.
Central bank commentary: Any signs from the Bank of Canada that more rate cuts are coming could drive CAD lower.
Oil prices: Canada’s economy relies heavily on oil exports. If oil falls further, the CAD may decline again.
Stay alert to news around UK inflation, Canadian job updates, and energy markets.
Risks Ahead
There are still a few uncertainties that could change the outlook quickly:
If the UK economy worsens or inflation drops sharply, the BoE might cut rates again, which could weaken the pound.
On the flip side, if Canada posts strong trade or job numbers, or oil prices recover, the Canadian Dollar may recover some ground.
Also, if global conditions become more uncertain (e.g., bigger moves in the U.S. economy), both currencies could get pulled in unexpected directions.
What This Means If You’re Sending gbp to cad Abroad
If you’re sending Pound Sterling to Canada in the next few weeks, this is a relatively favorable time. With GBP/CAD sitting near 1.86, you’re getting more Canadian Dollars for your Pounds compared to earlier this year when the rate dipped toward 1.83.
However, since the pair might face a pullback from resistance at 1.8673, it might be smart to lock in transfers soon, especially if signs point to the Pound weakening later in the month.
If you don’t need to send money urgently, you might still wait a few days, as minor dips could offer even better timing within this general uptrend.
In short
The GBP/CAD rate is benefiting from Canada’s economic struggles and a surprisingly resilient Pound.
It recently hit 1.8673, a tough resistance level, making short-term upside limited.
But overall, the trend leans positive for those exchanging GBP to CAD.
If you're planning to send money from the UK to Canada, the current rate is favorable, though possibly near the short-term peak.
Keep an eye on economic news from both countries, but consider acting soon if you want to catch the current rates.
