The GBP to THB exchange rate is currently range-bound, trading close to recent lows. Key drivers include the divergent monetary policies of the Bank of England (BoE) and the Bank of Thailand (BoT). The BoE is expected to cut interest rates due to declining inflation and slowing growth, while the BoT may keep rates steady, which supports the baht.
Additionally, UK economic growth is projected to slow, while Thailand benefits from a strong current account surplus and anticipated capital inflows, contributing to a stronger baht.
In the near term, GBP to THB is likely to trade within a stable range, as recent pricing shows it is below its three-month average. An upside risk could arise if the Fed signals a slower pace of interest rate cuts, potentially benefiting the pound. Conversely, a downturn in global oil prices could negatively impact trade and market sentiment, impacting both currencies.