The GBP to PHP exchange rate has a range-bound bias between recent highs and lows.
The key drivers influencing this include the interest rate differential, with the Bank of England indicating a cautious approach to future rate cuts, while the Bangko Sentral ng Pilipinas has moved towards easing policies. Additionally, inflation trends are pivotal; the UK expects inflation to decline towards its target, while the Philippines is navigating economic challenges that could hinder growth.
In the near term, the trading range for GBP to PHP is likely to remain stable, oscillating around recent highs near 79.50 and its average over the past three months.
Upside risks may stem from better-than-expected retail sales in the UK, potentially uplifting the pound. Conversely, downside risks may arise from further rate cuts or negative economic signals from the Philippines, which could weaken the peso and impact the exchange rate.