The current market bias for the GBP to MYR exchange rate is bearish.
Key drivers include:
- The Bank of England is expected to reduce interest rates while inflation is projected to decline, impacting GBP negatively.
- The Malaysian Ringgit benefits from strong economic fundamentals and positive fiscal reforms, supporting its appreciation.
- Malaysia’s expectations of continued GDP growth and improved fiscal balance strengthen the MYR.
In the near term, the GBP to MYR is likely to trade within a stable range, with potential dips below recent lows given current economic indicators.
An upside risk could emerge if the UK retail sales figures show stronger-than-anticipated growth, boosting GBP. Conversely, a downside risk is presented by potential further interest rate cuts from the BoE, adding downward pressure on the pound. Additionally, fluctuations in oil prices, currently trading below their three-month average, could also influence MYR's performance against GBP.