EUR/QAR Outlook: Slightly positive, but likely to move sideways as the rate is just above its recent average, lacking a clear driver.
Key drivers:
• Rate gap: The European Central Bank is expected to maintain a neutral monetary policy, which supports the Euro against the Qatari Riyal, pegged to the US dollar.
• Risk/commodities: Oil prices are rising, currently above average, benefiting the Qatari economy and providing a supportive backdrop for the QAR.
• One macro factor: Eurozone inflation is projected to decrease, potentially stabilizing the Euro's values if economic sentiment in Germany improves.
Range: The EUR/QAR rate is likely to hold steady within its recent trading range, without significant moves toward the extremes.
What could change it:
• Upside risk: A notable improvement in German economic sentiment could strengthen the Euro.
• Downside risk: A significant decline in oil prices could pressure the QAR and negatively impact the EUR/QAR rate.