Bias: The outlook for EUR/OMR is range-bound as it currently sits just below the 90-day average and within the middle range of the past three months.
Key drivers:
• Rate gap: The European Central Bank is expected to maintain a neutral monetary policy, while the Omani Rial is stable, limiting significant movement in the euro's value against the rial.
• Risk/commodities: Oil prices have been volatile, recently trading above the 90-day average, which may support the Omani economy and stabilize the Rial against the Euro.
• One macro factor: The Eurozone saw a disappointing contraction in trade, which dampens the euro's strength amid persistent geopolitical uncertainties.
Range: EUR/OMR is likely to hold steady within its recent range as neither currency shows strong momentum for a breakout.
What could change it:
• Upside risk: A resolution to the ongoing geopolitical issues or recovery in Eurozone economic indicators could boost the euro.
• Downside risk: Continued weakness in Eurozone trade data or further disturbances in oil supply could weaken the euro against the Omani rial.