The market bias for USD to XOF is currently bearish.
Key drivers influencing this trend include the anticipated interest rate cuts from the Federal Reserve, which could weaken the USD and prompt traders to seek alternatives. Additionally, the Alliance of Sahel States’ plan to establish a new currency may weaken demand for the XOF as fewer countries will be using it. Furthermore, improving global economic growth may lead to a mixed impact on currency stability, as rising commodity prices could enhance trade terms for some nations.
In the near term, the USD to XOF exchange rate is expected to range between a stable corridor around the current price, reflecting recent trading patterns.
An upside risk could arise if the US consumer sentiment improves, increasing confidence in the USD. Conversely, a downside risk might be triggered by the successful introduction of the new currency by the Alliance of Sahel States, which could challenge the XOF's stability.
