Forecasts for GBP to PHP
The GBP to PHP exchange rate has recently been under pressure, with current trading levels around 73.87, indicating a drop to 14-day lows and reflecting a stable range over the past three months from 71.77 to 75.82. Analysts suggest that the British pound's value is influenced by a combination of domestic economic performance, political stability, and monetary policy set by the Bank of England (BoE). With key data absent from the UK economic calendar and local elections underway, the pound remains largely directionless. Investor sentiment is tempered by concerns about political instability, particularly as results from these elections may impact confidence in Labour’s position.
The announcement of a 10% tariff on UK goods by former U.S. President Donald Trump, part of a broader trade war strategy, adds another layer of complexity. Such tariffs could hamper the UK's post-Brexit economic recovery, with analysts highlighting the potential adverse effects on foreign investment and business growth, both crucial for the GBP's trajectory in the coming years. The pound's sensitivity to political events means that any negative outcomes from the elections could exacerbate volatility.
Meanwhile, the Philippine peso is also facing challenges amid a climate of political uncertainty, fueled by the recent arrest of former President Rodrigo Duterte. This has raised concerns about the implications for the upcoming mid-term elections, despite such elections historically leading to fewer policy shifts. Experts believe that the peso's external balances are weakening, with forecasts suggesting potential depreciation against the USD by 2025, reflecting a tough environment for the currency.
Overall, the GBP to PHP exchange rate outlook is contingent upon the interplay of these domestic and international factors, with both currencies experiencing pressures that could influence their values in the near term. As the UK navigates its post-Brexit landscape amidst tariff impositions, and the Philippines grapples with political uncertainties, market participants are advised to remain vigilant of developments that could impact exchange rates moving forward.
