GBP/WST Outlook: The outlook for GBP/WST is likely to move sideways as the rate is near its recent average and trading within a mixed context.
Key drivers:
• Rate gap: The Bank of England is maintaining a cautious approach, while the Central Bank of Samoa is focused on reducing excess liquidity, which may support the WST.
• Risk/commodities: Oil trends remain stable, influencing currents in both economies, but not significantly swaying either currency.
• One macro factor: Ongoing geopolitical tensions affecting global markets could create further uncertainty for the British Pound.
Range: Expect GBP/WST to hold within its recent stable range, likely testing the extremities as mixed signals evolve.
What could change it:
• Upside risk: A surprise improvement in UK economic data could lift GBP higher against WST.
• Downside risk: A significant escalation in US tariffs could pressure the GBP, leading to losses against the WST.