The market bias for GBP to THB is currently bearish.
Key drivers influencing this trend include the interest rate differential, as the Bank of England is expected to cut rates while the U.S. Federal Reserve is more cautious. Additionally, the UK faced a slowdown in economic growth, projected at 1.2% for 2026, which is exacerbated by fiscal concerns and weak trade relations. The Thai Baht is bolstered by expectations of a strengthened current account surplus and an average forecast of 31.8 per U.S. dollar, despite projected GDP growth of only 1.5% for 2026.
The near-term trading range for GBP to THB is likely to remain steady, with fluctuations expected but within a tight band. Potential upside risks include stronger-than-expected U.K. economic data that could shift sentiment favorably towards the pound. Conversely, downside risks may arise from aggressive monetary easing by the BoE or further weakening in Thailand’s export markets, which could negatively impact the Baht.