EUR/QAR Outlook:
The EUR/QAR is slightly positive, trading above its recent average and testing recent highs. However, upcoming economic data may limit upward momentum.
Key drivers:
• Rate gap: The European Central Bank maintains a cautious stance on interest rates while the Qatari Riyal benefits from its fixed peg to the strengthening US dollar.
• Risk/commodities: Oil prices are at 90-day highs, which typically supports the euro, but the relationship remains volatile.
• One macro factor: Germany’s upcoming CPI data could indicate easing inflation, potentially impacting the euro’s strength.
Range:
EUR/QAR is likely to drift within its recent range, testing extremes but showing limited movement each day.
What could change it:
• Upside risk: A surprise increase in Eurozone growth projections could boost the euro.
• Downside risk: Weak inflation data from Germany may pressure the euro lower.
