The GBP/VND bias is bullish-to-range-bound, as the current rate is above the 90-day average and positioned in the upper half of the three-month range.
Key drivers:
• The Bank of England is cautious about rate cuts, with potential reductions in the near future, influencing the Pound's stability.
• Oil prices have remained volatile, impacting risk appetite and the demand for currencies like the VND which is sensitive to global commodity trends.
• Vietnam's projected GDP growth of 7% in 2026 supports a positive outlook for the Đồng, contrasting with anticipated slower growth in the UK.
Range: Expect the GBP/VND pair to hold steady within the recent three-month range, likely drifting as the market absorbs ongoing developments.
What could change it:
• Upside risk: News of significant revisions to UK economic growth could boost GBP.
• Downside risk: Sudden geopolitical tensions could increase demand for safe-haven assets, negatively impacting the GBP.