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 October 2025.
GBP to CAD: Where It Stands
The British Pound (GBP) has recently slipped back after hitting a near nine-year high against the Canadian Dollar (CAD) at around 1.8842.
Currently, the exchange rate is a bit lower, but still higher than it has been for most of the past year, hovering around the 1.86 level.
This means that 1 British Pound buys approximately 1.86 Canadian Dollars.
What’s Driving GBP to CAD?
The Pound vs. Canadian Dollar exchange rate is being driven by differences in the economies and interest rates of the UK and Canada.
The UK’s central bank, the Bank of England (BoE), is currently holding interest rates steady because UK inflation is still higher than it would like. This is keeping the Pound stronger.
Meanwhile, Canada's central bank, the Bank of Canada (BoC), has started cutting interest rates because its economy is showing signs of slowing, particularly in exports and overall growth.
Lower interest rates tend to weaken a currency, so this is putting pressure on the Canadian Dollar.
Another big factor is oil prices. Canada is a major oil exporter, so when oil prices go up, the Canadian Dollar usually strengthens.
Lately, oil prices have helped the Canadian Dollar a little, but not enough to outpace the stronger British Pound.
What Do the Charts Say?
From a technical point of view (looking at price trends), GBP/CAD recently broke a major resistance level around 1.8740.
Although it dropped back a bit after touching 1.8840, the longer-term trend still supports a strong Pound.
Right now, key support for the currency pair is around 1.8500. This means if the rate drops near that level, it might bounce back up again.
Resistance is near 1.8830, if the pair moves above this, it could rise toward even higher levels, like 1.90.
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What to Watch in October 2025
In the coming month (early 2025), keep an eye on:
UK inflation and GDP: If prices in the UK stay high, the Pound could stay strong.
Canadian economic data: If Canada’s job numbers and trade figures come in weak, the Canadian Dollar might stay under pressure.
Central bank decisions: While the BoC is expected to cut rates again, any surprise move from the BoE, like signalling a rate cut, could weaken the Pound.
Oil prices: If oil prices jump, the Canadian Dollar might strengthen slightly.
Risks Ahead
The main risk to a strong Pound is if the UK economy weakens more quickly than expected, pushing the BoE to start cutting rates sooner.
On the other side, if the Canadian economy shows signs of improvement or oil prices surge, the Canadian Dollar could strengthen and GBP/CAD could fall.
There’s also general global uncertainty, like from the US Fed, which can affect investors’ confidence in higher-risk currencies like CAD.
What This Means If You’re Sending GBP to CAD Abroad
Right now, the exchange rate is favorable if you are sending Pounds to Canada.
You’re getting more Canadian Dollars for each Pound compared to earlier in the year. But this might not last forever.
If the UK central bank signals cuts soon or if Canada's economy stabilizes, the Pound could drop slightly.
That could mean fewer Canadian Dollars for your Pounds later on.
So, if you’re planning to send money from the UK to Canada soon, you might want to act while the rate is still good.
In short
The Pound is still strong compared to the Canadian Dollar.
The BoE holding rates and the BoC cutting rates support a strong GBP/CAD.
Watch for 1.8500 as support and 1.8830 as resistance.
A rise above 1.8830 could mean more gains ahead.
It’s a good window to send GBP to Canada, but don’t wait too long , things can shift quickly.
