GBP/SAR Outlook: Slightly positive, but likely to move sideways as the rate is above its recent average and near 3-month highs without a strong driver.
Key drivers:
- The Bank of England is expected to maintain a cautious approach to rate cuts, which may support the pound.
- Oil prices, closely linked to the Saudi economy, have shown recent stability, helping to keep the riyal steady.
- Economic growth in the UK is projected to slow, with lower household incomes dampening GBP prospects.
Range: The GBP/SAR is likely to hold within its recent range, showing limited movement as the rate settles near current highs.
What could change it:
- A significant shift in US trade policies could alter demand for the GBP.
- Any sudden drop in oil prices may negatively impact the riyal and put downward pressure on the GBP/SAR rate.