USD/WST Outlook:
The USD/WST exchange rate is likely to decrease as it trades below its three-month average and near recent lows. Ongoing tariff uncertainties are adding to pressure on the USD.
Key drivers:
• Rate gap: The Federal Reserve's recent rate hikes have strengthened the USD, while the Central Bank of Samoa's focus on reducing liquidity might not have the same effect on the WST.
• Risk/commodities: Current volatility in global markets, driven by concerns over new tariffs, is likely to pressure the USD further.
• One macro factor: The impending parliamentary by-elections in Samoa could create political uncertainty, affecting the WST's stability.
Range:
The USD/WST is expected to drift within its recent range as uncertainties keep the exchange rate muted.
What could change it:
• Upside risk: A positive shift in U.S. economic data could bolster the USD.
• Downside risk: An escalation in tariff measures noted in upcoming U.S. speeches could weaken the USD.
