GBP/XCD Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver at the moment.
Key drivers:
• The Bank of England is expected to leave interest rates on hold, fueling uncertainty about future monetary policy which may impact the pound’s performance.
• Oil prices remain above average, which can support the GDP as higher oil prices often influence inflation and cost of living concerns.
• The ongoing geopolitical tensions around the U.S. military's actions in Venezuela could create fluctuations affecting both GBP and XCD.
Range: GBP/XCD is likely to drift within its recent 3-month range, given the current stability in prices.
What could change it:
• An unexpected shift in the Bank of England's policy direction could drive the pound higher.
• A significant downturn in UK economic data could put downward pressure on the GBP, affecting the exchange rate negatively.