The current market bias for the GBP to WST exchange rate is bullish.
Key drivers include:
- The Bank of England (BoE) is indicating a slower pace of interest rate cuts, supporting the Pound.
- The Central Bank of Samoa is maintaining its current policy but is focused on reducing liquidity, which might support the WST in the longer run.
- The UK's inflation is projected to decline, while economic growth is expected to slow, affecting GBP sentiment.
In the near term, the expected trading range for GBP to WST is likely to remain steady, trading near the current highs but without significant movement outside the established range. The rate is currently at 90-day highs around 3.8025, well above the three-month average.
An upside risk could arise if UK retail sales figures show stronger than expected growth, bolstering the Pound. Conversely, a downside risk would be any negative developments in the UK’s fiscal situation, which could prompt further BoE rate cuts and weaken GBP.