GBP/PHP Outlook:
The GBP/PHP is likely to decrease as it is currently trading near 60-day lows and is below its recent average. UK political uncertainty is adding downward pressure on the pound.
Key drivers:
• Rate gap: The Bank of England's more dovish stance contrasts with the Bangko Sentral ng Pilipinas' recent policy easing, contributing to the weakened GBP.
• Risk/commodities: Recent fluctuations in oil prices could impact the UK's economic outlook, which directly affects the pound's stability.
• One macro factor: Ongoing political instability in the UK is likely to dampen investor confidence, particularly following recent by-elections focused on leadership.
Range:
Expect the GBP/PHP to test lows within a stable range, as the overall trend suggests limited upward movement.
What could change it:
• An upside risk could arise from any positive UK economic news that reassures investors.
• A downside risk may come from escalating political tensions in the UK, potentially weighing more heavily on the pound's value.
