The market bias for GBP to CNY is currently range-bound.
Key drivers include:
- Recent interest rate signals from the Bank of England suggest cautious monetary policy, with potential rate cuts on the horizon.
- The Chinese yuan is facing depreciation pressures against the USD but benefits from central bank support aiming to stabilize it.
- UK GDP growth is projected to slow, affecting the pound's strength against the yuan.
In the near term, GBP to CNY is expected to trade within a stable range, reflecting its recent performance close to 30-day lows.
An upside risk could emerge from improved economic indicators in the UK or stronger commodity prices, while a downside risk might stem from intensified geopolitical tensions or persistent weak data from China.