The GBP to AED exchange rate is currently range-bound, with recent trading near 4.9351.
Key drivers include:
- The Bank of England (BoE) is projected to cut rates to 3.25% as inflation decreases, contrasting with the Federal Reserve’s more cautious approach to rate cuts.
- The UK's economic growth is expected to slow, affecting investor confidence in the pound.
- In contrast, the UAE's real GDP is forecasted to grow robustly, supporting the dirham's strength.
In the near term, the GBP to AED rate is expected to remain within a steady range given the recent volatility and global economic signals. Upside risks could arise if there are stronger-than-expected UK economic data or BoE signals hinting at a more hawkish stance. Conversely, a more pronounced deterioration in UK growth forecasts or an acceleration in UAE economic performance could put downward pressure on the GBP.