USD/XOF Outlook:
Slightly weaker, but likely to move sideways, as the rate is below its recent average and lacks a clear driver.
Key drivers:
• Rate gap: The Federal Reserve's recent decision to maintain interest rates shows a cautious approach compared to BEAC's stability assurances for the CFA franc.
• Risk/commodities: With fluctuating oil prices impacting the US economy, any decline could further weaken the USD against emerging currencies like the XOF.
• One macro factor: Côte d'Ivoire's steady economic growth at nearly 6% reveals resilience that may support the XOF amidst global shifts.
Range:
The USD/XOF is expected to drift within its current range, showing limited movement in either direction.
What could change it:
• Upside risk: A strong recovery in US employment figures could bolster the USD's strength against the XOF.
• Downside risk: Renewed concerns over geopolitical tensions affecting US trade relations might further pressure the USD lower.
