GBP/MYR Outlook:
The GBP/MYR exchange rate is likely to decrease as it trades near recent lows and is significantly below its 90-day average. Pressures from potential Bank of England rate cuts are weighing on the pound.
Key drivers:
• Rate gap: The Bank of England's cautious stance on interest rates contrasts with Malaysia's stable monetary policy, favoring the MYR.
• Risk/commodities: Recent oil price highs may support the MYR, as Malaysia is an oil-exporting country benefiting from elevated prices.
• One macro factor: UK political uncertainties surrounding upcoming elections could further impact the value of the pound.
Range:
The GBP/MYR movements are likely to test lower extremes within its recent range.
What could change it:
• Upside risk: A stronger-than-expected UK economic report could lead to a rebound in GBP.
• Downside risk: Continued speculation about additional Bank of England rate cuts could drive the GBP lower.