The market bias for the GBP to MYR exchange rate is currently range-bound.
Key drivers include the interest rate differential, as the Bank of England is expected to lower rates gradually amidst slowing inflation and growth, while the Malaysian economy shows positive signs, supported by GDP growth and fiscal reforms. Global oil price trends also come into play, as recent volatility in oil prices may affect the MYR, given Malaysia's position as a net oil exporter.
In the near term, the GBP to MYR rate is likely to trade within a stable range but could see fluctuations.
An upside risk could emerge from stronger-than-expected retail sales data in the UK, which may support the pound. Conversely, a downside risk looms if the Malaysian Ringgit continues to benefit from narrowing interest rate differentials and robust economic performance, potentially putting pressure on the pound.
