USD/XPF Outlook:
Slightly weaker, but likely to move sideways as the rate is below its recent average and near recent lows without a clear driver.
Key drivers:
• Rate gap: The Federal Reserve has kept rates steady, while concerns around a declining US dollar continue to rise, impacting its strength against the XPF.
• Risk/commodities: Oil has remained below average, which may pressure the US dollar but has limited direct impact on the XPF.
• One macro factor: Ongoing geopolitical tensions related to US trade policies are putting downward pressure on the USD, influencing the dollar's standing against the XPF.
Range:
Expect the USD/XPF to hold steady within its recent range as conditions lack a strong directional push.
What could change it:
• Upside risk: Improved US economic data could strengthen the USD against the XPF.
• Downside risk: Continued global de-dollarization trends may further weaken the USD's position.
