GBP/OMR Outlook:
Slightly positive, but likely to move sideways, as the rate remains above its recent average, but lacks a clear driver.
Key drivers:
• Rate gap: The Bank of England has taken a more dovish approach, holding interest rates steady while the Central Bank of Oman has maintained a stable policy stance.
• Risk/commodities: Oil prices are currently at highs, which may support the Omani Rial, impacting the GBP to OMR exchange rate indirectly.
• One macro factor: Ongoing political uncertainty in the UK is limiting GBP movement ahead of key economic data releases, creating caution among investors.
Range:
The GBP/OMR is likely to move within its recent 3-month range, generally holding its current level without significant deviations.
What could change it:
• Upside risk: A stronger-than-expected UK GDP report could bolster the pound's position.
• Downside risk: Further political instability in the UK could lead to increased pressure on the GBP.