The GBP to VND exchange rate remains range-bound, currently trading slightly above its recent average.
Key drivers include the interest rate differential, with the Bank of England set to cut rates, which may weaken the pound, while the U.S. Federal Reserve is expected to adopt a more cautious approach to rate cuts. Economic growth in the UK is projected to slow to 1.2%, impacting investor confidence. In Vietnam, an ambitious GDP growth target of at least 10% for 2026 and controlled inflation around 3.8% provide support for the VND.
Expect the GBP to range broadly over the next few months, but significant volatility could arise. Upside risks include stronger-than-expected UK economic data or shifts in U.S. monetary policy. Conversely, downside risks include deeper fiscal issues in the UK or instability in Vietnam's upcoming legislative elections.