USD/WST Outlook: Slightly weaker, but likely to move sideways, as the rate is below the recent average and near recent lows with no strong drivers for change.
Key drivers:
- The Federal Reserve is expected to make plans for future rate cuts, which tends to weaken the US dollar compared to other currencies.
- The Samoan Central Bank's efforts to reduce excess liquidity aim to stabilize their economy, potentially supporting the Tālā against the USD.
- Economic projections indicate growth in Samoa, driven by increased government spending and tourist revenues, which bolster investor confidence.
Range: The USD/WST pair is likely to drift within its current range, as conditions are favorable for stability rather than significant movement.
What could change it:
- An unexpected increase in US inflation data could strengthen the USD if it leads to reassessed Fed rate cut expectations.
- Renewed tensions impacting market confidence in the US could pressure the USD further, pushing it lower against the Tālā.
