The current market bias for GBP to MYR is range-bound.
Key drivers include the interest rate differential, with the Bank of England signaling a slower pace of rate cuts, which may support the pound. Meanwhile, Malaysia's strong economic fundamentals and narrowing fiscal deficit are expected to bolster the Malaysian Ringgit. Inflation trends reveal the UK expecting a decrease, while Malaysia's robust GDP growth adds to the MYR's appeal.
In the near term, the GBP to MYR is expected to trade within a stable range. The latest data shows GBP at 5.4658, which is 1.2% below its three-month average of 5.5297, suggesting limited movement ahead as it has fluctuated between 5.4156 and 5.6840 recently.
An upside risk for GBP could emerge from stronger-than-expected retail sales in the UK, which would support the currency. Conversely, a downside risk could stem from continued pressure on oil prices, currently at 60.75 USD, that may impact Malaysia's economic outlook and the MYR’s strength.