The GBP/MYR outlook remains range-bound, sitting just below the 90-day average and within the stable mid-range of the past three months.
Key drivers:
- Rate gap: The Bank of England's cautious approach to rate cuts contrasts with Malaysia's resilient economic growth, supporting the MYR against the GBP.
- Risk/commodities: Oil prices have been volatile, currently above average, which generally benefits the MYR due to Malaysia's strong commodity exports.
- One macro factor: Malaysia's economy is projected to grow robustly, enhancing investor confidence in the MYR and influencing GBP/MYR dynamics.
Range: The GBP/MYR is likely to hold steady within the current mid-range, reflecting broader market influences and the absence of strong data from the UK.
What could change it:
- Upside risk: A surprising robust UK economic data release could bolster the GBP.
- Downside risk: Increased geopolitical tensions negatively impacting risk appetite may push the GBP lower against the MYR.