Trading the Pound Sterling against the Canadian dollar, the GBP/CAD currency pair is an interesting choice for forex traders who are experienced in trading market volatility and don't mind a higher exposure to risk. Although the GBP is one of the more stable currencies in the forex market, it has experienced significant volatility in recent years owing to Brexit-related uncertainties. On the other hand, the CAD is a commodity currency which is closely correlated with crude oil - a key export from Canada.As a result, the Canadian dollar sees significant movement whenever oil markets experience high volatility - when crude oil prices rise, the CAD strengthens and vice versa. A stronger CAD turns GBP/CAD bearish while a weakness in the CAD makes this forex pair trade bullish. This pair also sees considerable volatility based on the market sentiment - a risk-off mood sends traders away from the CAD and towards safer, more stable currencies, causing the exchange rate of GBP/CAD to soar.The GBP/CAD currency pair is also severely affected by developments surrounding Brexit. Any positive progress in Brexit strengthens the GBP and causes this pair to trade bullish. On the other hand, any developments that raise the possibility of a no-deal Brexit scenario weaken the GBP and turn this forex pair bearish.