The GBP to PHP exchange rate shows a bullish market bias as the pound strengthens following the Bank of England's (BoE) recent interest rate decision.
Key drivers include:
- The BoE's indication of slower rate cuts, suggesting a wider interest rate differential that favors the GBP.
- The recent release of retail sales figures, which could provide additional support to the pound if they show a rebound.
- The Philippine peso's weakening performance alongside expectations of further monetary easing from the Bangko Sentral ng Pilipinas (BSP).
In the near term, GBP to PHP is expected to remain within a stable range influenced by both the pound's strength and factors affecting the peso.
An upside risk could arise from stronger-than-expected UK economic data, while a downside risk might come from increasing fiscal concerns in the UK that could pressure the pound.