GBP/WST Outlook:
The outlook for GBP/WST is likely to move sideways, as it is near its recent average and within a stable range, showing mixed signals from both currencies.
Key drivers:
- Rate gap: The Bank of England held rates steady, indicating a cautious approach, while the Central Bank of Samoa focuses on reducing excess liquidity to maintain stability and support growth.
- Risk/commodities: The stable performance of oil prices is supporting the UK's economic outlook, but it may not significantly impact the Samoan currency at this time.
- One macro factor: UK inflation is at 3.4%, along with a recent rise in retail sales, highlighting a complex economic environment influencing GBP valuation.
Range:
GBP/WST is expected to hold steady within its recent trading range, fluctuating slightly without breaking extremes.
What could change it:
- Upside risk: A surprising improvement in UK economic indicators, such as stronger GDP data, could bolster the GBP.
- Downside risk: An unexpected shift in BoE policy toward a rate cut could strengthen the WST against the GBP.