GBP/CNY Outlook:
Slightly weaker, but likely to move sideways due to its position around the 90-day average.
Key drivers:
- Rate gap: The Bank of England's dovish stance contrasts with the People's Bank of China's supportive measures, leading to weaker GBP.
- Risk/commodities: Oil prices have been fluctuating but remain important, as sustained higher oil prices can pressure UK growth, impacting GBP.
- One macro factor: Uncertainty surrounding the UK's upcoming GDP figures may lead to a cautious approach among GBP investors.
Range:
GBP/CNY is likely to hold within its recent trading range, not testing the extremes in the short term.
What could change it:
- Upside risk: A stronger-than-expected UK GDP report could boost the pound.
- Downside risk: Further indications of a rate cut from the Bank of England could weigh heavily on GBP.