EUR/QAR Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
• Rate gap: The European Central Bank maintains a neutral policy stance while Qatar's Central Bank aligns its rates with the US Federal Reserve, supporting the QAR's stability.
• Risk/commodities: Oil prices have increased, trading above recent averages, which typically supports the QAR, given Qatar's economy's ties to oil.
• One macro factor: Qatar’s GDP is forecasted to rise, indicating a strengthening economic outlook that could bolster the QAR.
Range: The EUR/QAR is expected to drift within its recent range, showing stability but lacking significant momentum in either direction.
What could change it:
• Upside risk: A greater-than-expected improvement in Eurozone economic indicators or policy shifts from the ECB could support the Euro.
• Downside risk: Renewed geopolitical tensions affecting the Eurozone or a significant drop in oil prices could weigh on the Euro and strengthen the QAR.
