The current market bias for the EUR to QAR exchange rate is bearish. Key drivers include the eurozone's economic struggles, highlighted by Germany's trade contraction and slowing retail sales. The interest rate differential remains limited as the European Central Bank (ECB) maintains a neutral stance, while the Qatari Riyal benefits from a stable currency peg to the US dollar and a projected GDP growth of 3.2% fueled by a flourishing non-hydrocarbon sector.
In the near term, the EUR/QAR has shown stability, trading within a limited range but leaning towards lower values as recent price levels reflect 30-day lows. Upside risks could arise from a resolution of geopolitical tensions that might bolster the euro, while downside risks may stem from worsening economic indicators in the Eurozone or continued volatility in oil prices, which influence the euro indirectly. Overall, recent trends suggest cautious movement in the coming months as external factors weigh on the euro’s performance.
