USD/FJD Outlook: Bearish, as the rate trades near recent lows and is pressured by multiple factors.
Key drivers:
• Rate gap: The US Federal Reserve appears poised for rate cuts, weakening the USD compared to the Reserve Bank of Fiji’s stable position.
• Risk/commodities: Recent volatility in oil prices could further depress USD as higher oil costs strain the US economy, impacting exchange rates.
• One macro factor: The upcoming Federal Reserve policy announcement raises uncertainty for the USD, influencing market outlook and exchange rates.
Range: USD/FJD is likely to remain in its recent range, possibly drifting lower as traders react to new developments.
What could change it:
• Upside risk: A surprising announcement from the Federal Reserve that signals a delay in rate cuts could strengthen the USD.
• Downside risk: Any significant geopolitical tensions or economic setbacks in the US could push the USD lower against the FJD.
