The GBP to HKD exchange rate shows a bullish market bias, strengthened by recent signals from the Bank of England (BoE) regarding interest rates.
Key drivers include the interest rate outlook, with the BoE projecting a slower pace of future cuts as inflation eases. This contrasts with expectations for the Hong Kong Monetary Authority (HKMA) to maintain a stable interest rate, reinforcing the interest rate differential. The UK’s retail sales figures may also provide support for the pound if they exceed forecasts of growth.
Over the next 1 to 3 months, the expected trading range for GBP to HKD is likely to remain stable, fluctuating around current levels without significant movement outside recent patterns.
Upside risks could stem from improved economic data from the UK, while downside risks may be tied to renewed fiscal concerns that could pressure the pound further. The GBP is currently trading at 10.48, which is 1.3% above its 3-month average, reflecting a recent stable range between 10.12 and 10.50.