GBP/OMR Outlook: Likely to increase, as the rate is currently above its recent average and near recent highs due to key economic developments.
Key drivers:
• Rate gap: The Bank of England is poised for cautious rate cuts, while the Omani central bank remains stable, creating a favorable rate gap for GBP.
• Risk/commodities: Oil prices are presently above average, which supports the Omani Rial, but the current volatility could impact that support.
• One macro factor: Observations indicate that the UK economy may face a slowdown, with warnings of potential recession risks from new US tariffs affecting growth.
Range: GBP/OMR is likely to drift within its recent range, influenced by external economic pressures and domestic data.
What could change it:
• Upside risk: Positive developments in UK economic data could bolster GBP strength.
• Downside risk: Further escalation of trade tensions or geopolitical issues could negatively impact the Pound.