The GBP to RUB currency pair currently leans bullish, propped up by supportive signals from the Bank of England (BoE). Interest rate dynamics play a crucial role, with the BoE indicating a potential slowdown in future rate cuts, which benefits the pound. Meanwhile, the Bank of Russia maintains a high key interest rate but plans gradual cuts, aiming for stabilization.
Supporting macroeconomic factors include UK retail sales data that may show a rebound, which could further bolster the pound. In Russia, economic forecasts suggest GDP growth will slow, and this weaker growth might hinder the ruble’s performance.
The GBP to RUB exchange rate is expected to trade within a range slightly above its recent volatility, which has seen fluctuations of around 10.5%. An upside risk for GBP could arise from stronger-than-expected economic performance in the UK, while a downside risk stems from significant oil price declines that could put pressure on the ruble.
