The USD to XAF exchange rate currently carries a bearish bias.
Three key drivers are affecting this trend. First, the Federal Reserve plans to implement rate cuts, which may weaken the USD. Second, the XAF has recently appreciated against the USD, reflecting a stronger local currency. Finally, increased economic activity in Cameroon, aided by Chinese investment, supports the XAF.
In the near term, the USD to XAF pair is expected to trade within a stable range, reflecting recent behavior between 556 and 571.4.
The outlook could change if the Federal Reserve’s decisions on interest rates shift significantly, posing an upside risk to the USD. Conversely, continued strengthening of the XAF due to regional reforms or economic improvements represents a downside risk for the USD in this exchange rate.
