Peter likes to watch foreign movies/films is fine.

Now, as for the other: If you're referring to movies that are produced in the West, meaning Europe or the Americas, this is fine. But you should capitalize Western.

If you mean American-made movies that feature cowboys and Indians and horses and bison, etc., we refer to those as Westerns. If that's what you mean, then you should say

Peter likes to watch Westerns.

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