GBP/VND Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
- The Bank of England maintains a cautious policy stance, with expectations of unchanged interest rates, supporting the pound against the đồng.
- Oil prices have been relatively stable, with no significant movement impacting the VND, as Vietnam is sensitive to oil price fluctuations due to its import dependencies.
- Vietnam’s economic growth outlook is optimistic, with projections of 7% GDP growth in 2026, supporting the long-term stability of the đồng.
Range: The GBP/VND is likely to drift within its recent range as it remains elevated but without strong upward momentum.
What could change it:
- Upside risk: A sudden positive economic announcement from the UK that surprises markets could boost GBP further.
- Downside risk: Political uncertainty in the UK from upcoming local elections could shake investor confidence, negatively impacting the pound.
