Currency risk: GBP/CAD
One of the most important considerations for UK investors in Canadian stocks is the currency relationship between sterling and the Canadian dollar. Your returns in GBP terms are affected not only by the performance of the stock in Canadian dollars but by how the CAD/GBP exchange rate moves over your holding period.
If the Canadian dollar falls 10% against sterling over a year, a stock that rose 10% in Canadian dollar terms would deliver a roughly flat return in sterling terms after currency conversion. Managing this risk, particularly for larger or longer-term holdings, is worth considering carefully. However, the converse is also true.
For a detailed breakdown of the tools available, including forward contracts, options and currency-hedged ETFs, our guide to protecting your portfolio from currency risk covers the key strategies for UK investors with international exposure.
The GBP/CAD rate in 2026 has been trading in a range approximately between 1.67 and 1.77 (i.e.: £1 buys approximately 1.67 to 1.77 Canadian dollars), influenced by Bank of England rate policy, oil price movements as a result of the ongoing conflict in the Middle East, and US-Canada trade dynamics following the 2025 tariff developments.
