GBP/PHP Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
• Rate gap: The Bank of England has adopted a more cautious policy, keeping rates steady while the Bangko Sentral ng Pilipinas indicates potential easing.
• Risk/commodities: Oil prices have been stable, contributing to limited risk across currencies like GBP and PHP.
• One macro factor: The Philippine peso has faced downward pressure due to high expectations of a rate cut by its central bank, which may further weaken the currency.
Range:
The GBP/PHP is likely to drift within its recent range, as both currencies face internal economic pressures.
What could change it:
• Upside risk: A stronger-than-expected announcement from the Bank of England could bolster GBP.
• Downside risk: Any significant political instability in the UK could penalize the pound further.
