The pound edged lower against the Canadian dollar as Brent crude climbed back above $100 a barrel, lifting the commodity-linked loonie and keeping GBP/CAD pinned near CA$1.8658.
GBP/CAD Near CA$1.8658 as Oil Tops $100
The move matters because higher oil prices feed directly into Canada’s export income, terms of trade and corporate cash flow, while also strengthening a currency that tends to track energy markets. Brent’s break above $100 for the first time since July came after US strikes on five Iranian oil tankers, escalating Middle East tensions and reviving supply concerns.
Sentiment IndicatorsⓘProprietary · adalytica.com · September 13, 2026
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For investors, the immediate implication is a firmer Canadian dollar versus currencies tied more to domestic growth than commodities. That pressure is amplified by worries over Canada’s trade conflict with the US, even as Prime Minister Mark Carney warned the pivot away from its biggest trading partner “will come at a cost.”
Sterling, meanwhile, has struggled to gain traction as rising gas prices in the UK stoke inflation concerns and complicate the Bank of England’s policy path. Higher energy costs may keep rate-cut expectations subdued, but they also raise the risk of weaker consumer spending if the cost-of-living squeeze deepens.
Friday’s UK GDP release is now the key catalyst for GBP/CAD. Economists expect flat monthly growth in July, and a soft reading would add to the case for further sterling underperformance just as crude remains the dominant driver for the loonie.
| Entity | Gains | Losses |
|---|---|---|
| Canadian dollar | ▲Higher oil-linked support | ▼Trade-war fallout and growth concerns |
| British pound | ▲Higher UK inflation expectations | ▼Weak GDP and consumer-spending risk |
| Oil producers/exporters | ▲Stronger revenue and cash flow | ▼Importers and energy consumers |
| GBP/CAD longs | ▲— | ▼Near-term downside if oil stays above $100 |
