The USD to XPF exchange rate is currently bearish.
The key drivers include:
- The expectation of three Federal Reserve rate cuts by mid-2026, which could weigh on the USD.
- A trend toward improving global economic growth and rising commodity prices may lead to increased volatility for the USD.
- The CFP franc has appreciated significantly over the past year and shows signs of stability due to its peg to the euro and low inflation rates in the French Pacific territories.
In the near term, the trading range is expected to remain stable with slight fluctuations near recent highs, likely trading between this level and 102.5.
Upside risks include stronger-than-expected U.S. economic data that could delay rate cuts and support the dollar. On the downside, a shift in ASEAN countries to reduce USD reliance could accelerate depreciation of the USD, further benefiting the XPF.
