EUR/XPF Outlook: The outlook for EUR/XPF is slightly positive, but likely to move sideways as it trades near its recent average and recent highs.
Key drivers:
• The European Central Bank has maintained a neutral monetary policy stance, which supports the euro against the XPF.
• The oil market is currently volatile, with prices above their recent average, which can indirectly affect the euro through energy costs in the Eurozone.
• The economic growth forecast for the Eurozone projects steady growth, strengthening the euro’s stability in the currency market.
Range: The EUR/XPF is likely to hold within its recent range, with minimal volatility expected in the short term.
What could change it:
• Upside risk: A significant improvement in Germany's economic sentiment could bolster the euro's strength.
• Downside risk: Any escalation in geopolitical tensions or negative economic data from the Eurozone could weaken the euro against the XPF.