The USD to XPF exchange rate has been influenced by various economic factors and recent developments. Analysts noted that the US dollar found some stability following the release of strong manufacturing and services PMIs, which contributed to a slight rebound despite mixed signals from rising jobless claims and risk-off market sentiment. With Federal Reserve Chair Jerome Powell set to speak at the Jackson Hole Symposium, any indication of a dovish policy shift could lead to a decline in the USD, affecting its strength against other currencies, including the XPF.
Factors surrounding the USD have also included upcoming inflation data, which is expected to show a 0.3% rise in core prices. This report may significantly impact future Federal Reserve interest rate decisions. Furthermore, geopolitical elements such as the nearing deadline for US-China trade negotiations and growing global dedollarization trends are also central in shaping the USD's trajectory.
In the context of the XPF, recent data indicates that the currency has appreciated by 0.69% over the past month, reaching an exchange rate of 102.65 against the USD as of mid-July. Analysts project the USD/XPF exchange rate could rise to 103.22 by the end of the current quarter and potentially reach 108.60 in the next 12 months. The stability of the XPF is bolstered by its peg to the euro, which has remained relatively stable due to consistent monetary policies from the European Central Bank.
Currently, the USD to XPF is trading near 14-day lows of approximately 101.8, which is 1.1% lower than its three-month average of 102.9. This range-bound trading has remained stable over the past three months, oscillating between 101.1 and 105.7. With inflation on the rise and central banks making critical monetary adjustments, the USD/XPF exchange rate remains susceptible to further fluctuations in the coming weeks. Observing these economic indicators and market sentiments will be crucial for those engaged in international transactions and currency exchanges.
