USD/WST Outlook:
Bearish, as the rate is below its recent average and near recent lows.
Key drivers:
• Rate gap: The Federal Reserve has held interest rates steady, while the Central Bank of Samoa is focusing on reducing excess liquidity.
• Risk/commodities: The recent decline in the USD coincides with increased geopolitical tensions, which have pressured the dollar.
• One macro factor: Samoa's economy is projected to grow by over 3% in the upcoming period, driven by investment and government spending, which supports the Tālā.
Range:
The USD/WST is likely to drift within its recent range, reflecting a low trading volume and limited volatility.
What could change it:
• Upside risk: A surprising increase in US economic data or job figures could stabilize the USD.
• Downside risk: Continued geopolitical tensions or weak US consumer spending reports may lead to further declines in the USD.