Forecasts for GBP to MYR
Recent forecasts for the GBP to MYR exchange rate focused on several key developments, particularly in light of ongoing trade tensions initiated by U.S. tariffs affecting both the UK and Malaysia. Analysts noted that the British pound (GBP) faced pressure due to profit-taking following gains spurred by positive GDP data. With a 10% tariff imposed by the U.S. on UK imports, concerns arose about the long-term impact on British economic recovery and investor confidence, particularly ahead of a pivotal UK-EU summit where trade relations were expected to be a central topic. If negotiations yield minimal progress, the GBP may encounter additional downward pressure.
In contrast, the Malaysian ringgit (MYR) is currently grappling with a weakened outlook, exacerbated by the U.S. imposing a 24% reciprocal tariff on Malaysian goods. Experts observed that this has compounded the negative sentiment across emerging Asian currencies, which faced a recent decline as global risk appetite diminished amid fears of escalating trade conflicts. The MYR’s performance is also intricately linked to oil prices, given Malaysia's status as a significant oil exporter. Recent data showed that oil prices (Brent Crude OIL/USD) have fallen to $65.52, about 4.5% below their three-month average, illustrating the volatility in this crucial market and its potential impact on the MYR.
The current exchange rate for GBP to MYR stands at 5.7143, aligning closely to its three-month average, which indicates a relatively stable trading range of 5.3%, from 5.5697 to 5.8653. However, traders should closely monitor developments in both economies, the direction of oil prices, and geopolitical sentiments, as these factors will continue to shape the future trajectory of the GBP/MYR pair. Overall, as analysts pointed out, both currencies are influenced by significant external factors, highlighting the complexities of currency trading in the current global economic environment.
