The exchange rate for GBP to SGD is currently trading at 60-day highs near 1.7417, positioning it just 0.6% above its three-month average of 1.732. Over the last three months, the rate has exhibited stability, trading within a modest range of 2.4% from 1.7105 to 1.7508.
Analysts note that the British pound's recent performance has been influenced by mixed signals from the UK jobs market. Following the latest labor market data, which indicated a slight slowdown, expectations for an interest rate hold by the Bank of England (BoE) remain intact. Forecasters suggest that the upcoming consumer price index data could provide further support for the pound ahead of the BoE’s decision.
In light of inflation concerns, major banks like HSBC and Deutsche Bank have adjusted their outlooks, with HSBC projecting that rates will remain steady until April 2026, while Deutsche Bank anticipates a potential cut in December. Investor sentiment is further complicated by rising long-term borrowing costs, highlighted by the surge in the 30-year gilt yield reaching its highest levels since 1998. Additionally, the upcoming UK budget announcement on November 26 is set to be closely monitored for its potential impact on fiscal stability and the pound.
On the Singapore side, the Monetary Authority of Singapore (MAS) has maintained its monetary policy settings amid a surprising 1.4% growth in Q2 2025, while easing trade tensions have also contributed positively to the economy. However, core inflation has fallen, providing MAS with flexibility in its policies, even as economists are divided on future adjustments. With the SGD retaining its strength in the current environment, it underscores the potential challenges the GBP may face as both currencies navigate their respective economic landscapes.
Overall, market participants should be aware of these developments, as they could lead to fluctuations in the GBP/SGD exchange rate in the coming weeks.
