The National Hurricane Center in Miami said Thursday the storm could make landfall over Cuba as a hurricane by Sunday.

A hurricane watch is in effect for the Cayman Islands. A tropical storm watch is in effect for parts of Nicaragua and Honduras, where several inches of rain are expected.

Paloma's center is located about 235 miles south of Grand Cayman and was moving north about 7 mph with sustained winds of 60 mph.

Forecasters say it could turn into hurricane with winds of 75 mph or more later Thursday night or early Friday. It's expected to make a gradual turn to the northeast later Friday or Saturday.