GBP/WST Outlook:
Slightly weaker, but likely to move sideways as the rate is below its recent average and is currently mid-range.
Key drivers:
- Rate gap: The Bank of England's dovish approach contrasts with the Central Bank of Samoa's focus on reducing excess liquidity, putting pressure on GBP against WST.
- Risk/commodities: Global oil prices are currently volatile, which could influence overall currency strength and indirectly impact both GBP and WST.
- One macro factor: Upcoming UK GDP figures could trigger volatility, but a modest increase in growth may not sufficiently support the pound.
Range:
GBP/WST is likely to hold steady within its recent range, without pushing towards extremes unless unexpected news arises.
What could change it:
- Upside risk: A significant improvement in UK GDP figures could bolster the pound’s strength.
- Downside risk: Continued political uncertainty in the UK or unexpected changes in bank policies could weaken GBP further.