AED/GBP Outlook: Slightly weaker, but likely to move sideways, as the rate is below the recent average and near recent lows without a clear supportive driver.
Key drivers:
• The Central Bank of the UAE maintains stable monetary policy, supporting the Dirham's value against the British pound.
• Rising global oil prices could strengthen the UAE's economy, benefiting the Dirham indirectly, but current volatility limits immediate impact.
• The UK faces economic challenges, with growth projected to slow and public sector spending reduced, which pressures the Pound.
Range: The rate is likely to drift within its recent range as economic pressures constrain significant movement.
What could change it:
• An increase in oil prices could lead to a stronger Dirham, improving the exchange rate.
• Unfavorable UK economic reports or political developments could further weaken the Pound, impacting the exchange rate negatively.
