Recent forecasts for the GBP to MYR exchange rate indicate a challenging environment for the British Pound, as various factors contribute to a bearish outlook. Concerns regarding the upcoming UK budget and potential fiscal shortfalls have led to increased skepticism among investors. The pound has weakened significantly against major currencies, recently trading around 5.4380 MYR, which is 3.2% below its three-month average of 5.6188 MYR. Analysts suggest that the pound's decline is driven by expectations of imminent interest rate cuts from the Bank of England, exacerbated by disappointing private sector growth projections and stagnating retail sales forecasts.
On the other side, the Malaysian Ringgit is experiencing notable strength, buoyed by a positive economic outlook. With the MYR appreciating to a 13-month high, driven by a stable monetary policy and optimistic GDP growth of 5.2% in Q3, market sentiment remains favorable. The Malaysian government has also secured beneficial trade agreements during the ASEAN Summit, further enhancing exports and investor confidence.
Additionally, fluctuations in oil prices could impact the MYR, given Malaysia's reliance on oil revenues. Currently, oil is trading at 63.19 USD, approximately 3.5% below its three-month average, amidst volatility affecting the broader energy market.
Overall, the contrasting trends for GBP and MYR suggest that the exchange rate may continue to face downward pressure for the pound as fiscal uncertainties persist, while the ringgit could maintain its strength if economic growth stays robust and external trade conditions remain favorable.
