The market bias for GBP to CNY is range-bound. The interest rate differential is shifting, with the Bank of England expected to lower rates to 3.25% amid slowing inflation and growth. In contrast, the People's Bank of China is likely to maintain a steady approach, focusing on currency stability which may enhance the yuan's value. Additionally, the UK's fiscal policy issues could lead to weaker sterling performance.
The expected trading range for GBP to CNY is stable, reflecting recent trading patterns. It has fluctuated within a narrow band over the past three months.
An upside risk includes stronger-than-expected UK economic data, which could bolster the pound’s position. Conversely, a downside risk is heightened fiscal concerns in the UK, which may pressure the pound lower against the yuan.