The current market bias for the SAR to GBP exchange rate is range-bound.
Key drivers include the interest rate differential, as the Bank of England is anticipated to cut rates, which may weaken the GBP relative to the SAR pegged to the US dollar. Additionally, the outlook for UK growth is cautious, with projections for economic slowdown and inflation trends remaining subdued.
Over the next 1–3 months, the trading range is expected to remain stable with minor fluctuations, influenced by recent price data showing the SAR to GBP near 0.1989, just below its three-month average.
An upside risk could arise from stronger-than-expected economic data from the UK, potentially supporting the GBP. Conversely, a downside risk includes ongoing fiscal concerns that could prompt further rate cuts from the Bank of England, pressuring the GBP against the SAR.