EUR/XPF Outlook: The outlook for EUR/XPF is slightly positive, likely to move sideways as it is near its recent average and 90-day highs without a specific driver to push it higher.
Key drivers:
• The European Central Bank is expected to maintain a neutral policy stance, supporting the euro against the stable CFP franc, which is pegged to the euro.
• Oil prices are currently high, which could lead to increased economic stability in the Eurozone benefiting the euro in the long run, though this correlation is less direct for the XPF.
• Germany's consumer confidence index is due soon; any improvement could boost demand for the euro.
Range: The EUR/XPF is likely to hold within its recent range, without significant upward or downward pressure expected.
What could change it:
• An upside risk could come from stronger-than-anticipated economic indicators from the Eurozone.
• A downside risk may arise from increased geopolitical tensions that could unsettle investors' confidence in the euro.