EUR/XPF Outlook: Slightly positive, but likely to move sideways, as the rate is near its recent average and recent drivers are mixed.
Key drivers:
• The European Central Bank is maintaining current interest rates for now, which adds stability to the euro against the CFP franc.
• Oil prices are elevated, with Brent Crude OIL/USD near recent highs; higher oil can affect the cost of imports and thus influence the euro's strength indirectly.
• The Eurozone is projected to experience lower inflation, which may support the euro's value moving forward.
Range: The EUR/XPF currency pair is likely to hold within its recent trading range as neither currency shows strong upward or downward momentum currently.
What could change it:
• An unexpected rise in Eurozone GDP could boost the euro against the franc.
• A decrease in oil prices might negatively impact the euro, affecting trade dynamics between Europe and the Pacific region.