The exchange rate for GBP to PHP currently stands at 77.19, which represents a 2.6% increase above its three-month average of 75.25. Over the past three months, the pair has traded within a relatively stable range of 73.00 to 77.72, indicating a moderate level of volatility.
Recent updates show that the British pound has regained some ground, aided by political stability following support from Prime Minister Keir Starmer for Chancellor Rachel Reeves, which has alleviated some concerns regarding leadership changes. A stronger-than-expected services PMI also contributed positively, although any significant upward movement may be limited due to a lack of notable UK economic data in the immediate future. Analysts suggest that the pound remains sensitive to domestic economic indicators, such as inflation and GDP growth, alongside broader market sentiment and political stability.
On the other hand, the Philippine peso faces headwinds, including a recent 17% reciprocal tariff imposed by the US, which may pressure its value. ABN Amro forecasts that the peso is likely to depreciate against the US dollar by 2025, influenced by weakened external balances. Political uncertainties also loom, particularly surrounding the upcoming mid-term elections, which may affect investor confidence.
The outlook for the GBP/PHP exchange rate is complex. Factors driving the GBP include the Bank of England's policy decisions and ongoing developments in the UK's post-Brexit trade relationships, particularly with its largest trading partners. Conversely, the peso is hindered by external trade pressures and domestic political uncertainties, which may keep it under pressure.
In summary, while the GBP has recently shown resilience, the peso's outlook appears more bearish, potentially widening the gap between the two currencies in the medium term. Investors and businesses engaging in transactions involving GBP and PHP should remain attentive to the evolving economic and political landscapes in both the UK and the Philippines, as these will play a crucial role in determining the future trajectory of this exchange rate.