The GBP/MYR currency pair represents the British pound sterling’s value in relation to the Malaysian ringgit. GBP/MYR, a cross-currency pair, is less traded than many other more well-known currency pairs.
In contrast to major and minor pairs, GBP/MYR often has less liquidity, which can lead to bigger spreads and increased volatility during times of geopolitical or economic instability. While domestic monetary policy, trade flows, and commodity markets—particularly those for petroleum products and palm oil, which are key exports for Malaysia—have an impact on the Malaysian ringgit, the pound is driven by developments specific to the UK economy and general risk sentiment.
GBP/MYR Performance
Util around June 2024, the pair moved mostly sideways before dropping significantly from July to September. Since then, it has again moved sideways, recently forming a slight range. However, that MYR strength has resulted in the pair looking set to close the year lower, despite the rise from its initial lows.
GBP/MYR ended 2024 down approximately 3.8% for the year.
| Timeframe | Performance |
|---|---|
| 3 Months | +1.20% |
| 6 Months | -5.67% |
| Year-to-Date | -3.78% |
| 1 Year | -4.09% |
Other Currency Pairs
GBPMYR Forecast
Despite various potential headwinds impacting the UK economy in 2025, analysts tend to be somewhat bullish on the economy and the British pound in general. Nomura analysts said in their recent outlook for the British pound that they expect it “to continue to gain ground gradually against other currencies where their respective central banks are more concerned about the downside risks to growth rather than sticky price pressures.”
Elsewhere, Forex.com senior market analyst Fiona Cincotta, looking ahead to 2025, argues that the UK economy is expected to continue to grow. However, Cincotta did caution that “GDP could be weaker than the 1.5% forecast by the BoE owing to several key factors, including uncertainty surrounding trade and a less expansionary UK budget.” This would, of course, have a negative impact on the pound.
As for Malaysia, MIDF Research said it foresees more funds flowing into emerging markets, including Malaysia, in 2025, as the US Federal Reserve continues with its policy easing. “Going into next year, we expect Malaysia’s economy to remain healthy with our preliminary gross domestic product growth forecast at 4.6% in 2025,” they added, predicting the currency to perform well against the US dollar.
For the GBPMYR specifically, Trading Economics says its global macro models projections and analysts expectations forecast the GBP/MYR to be priced at 5.62119 in one year.
Our View: Both currencies have potential tailwinds and headwinds going into 2025. However, traders should be particularly mindful of the wider spreads often associated with trading GBP/MYR, as it is a less liquid pair. These wider spreads can increase transaction costs and affect the profitability of short-term trading strategies. As such, traders should consider these factors carefully when managing risk and deciding on position sizes.
Trading the GBP/MYR
While there may be many potential opportunities to trade the GBP/MYR, market participants should take into consideration some key aspects that may impact performance. Those trading the currency pair should:
Understand the Impact of Spreads: For the reasons mentioned above, if you are looking to trade the pair, be aware of how the potential spreads could impact your position or possible profits in both the short and long term.
Find a Reputable Broker: Given that the pair is not too frequently traded, many brokers will opt not to have the currency on their platform. Therefore, if you do find a broker offering the pair, it is important to make sure they are a reputable broker and are regulated in the region you are trading from.
Assess Commodity Markets: As the MYR is partly influenced by the country’s commodity exports, particularly petroleum products and palm oil, traders should consider global demand and price trends in these markets.
Understand Other Macro Factors: Whether you are bullish or bearish, you should consider the short-, medium-, and long-term effects of each economy’s fundamentals and policy choices.
