USD/WST Outlook: The outlook for USD/WST is likely to decrease as it is currently below its recent average and near recent lows, influenced by a clear current driver.
Key drivers:
- Rate gap: The Federal Reserve's stance on halting rate cuts contrasts with the Central Bank of Samoa's focus on maintaining stability, putting pressure on the USD.
- Risk/commodities: Recently declining oil prices have created volatility, negatively impacting the USD's attractiveness amid global uncertainties.
- One macro factor: Geopolitical tensions surrounding U.S. tariff policies have further contributed to a negative outlook for the USD as investors seek safer havens.
Range: The USD/WST pair is expected to drift within its recent range without significant movement towards extremes.
What could change it:
- Upside risk: A strong recovery in U.S. economic indicators, such as a positive ISM manufacturing PMI, could bolster the dollar.
- Downside risk: Continued geopolitical tensions or a shift in investor focus towards safer assets could further depress the USD's value.