The GBP to MYR exchange rate is currently range-bound.
The Bank of England's signals about future interest rate cuts suggest a careful approach, which may stabilize the pound. In contrast, Malaysia's strong economic fundamentals and narrowing fiscal deficit could support the MYR's strength. Additionally, the anticipated interest rate cuts from the Federal Reserve may narrow the rate differential, benefiting the MYR.
The GBP to MYR has traded in a steady range recently, currently at 5.4571, which is about 1.2% below its three-month average.
An upside risk could stem from stronger-than-expected UK retail sales data, boosting the pound. Conversely, a downside risk might arise from increased oil prices, affecting Malaysia’s trade balance and potentially weakening the MYR.