The EUR to QAR exchange rate has a bearish bias.
Key drivers include the interest rate differential between the European Central Bank (ECB) holding rates steady while the Qatar Central Bank (QCB) recently cut rates by 30 basis points. Global risk sentiment is cautious due to ongoing geopolitical tensions, particularly regarding energy supply disruptions linked to the Ukraine conflict, which can indirectly affect the euro’s value. Economic growth in the Eurozone is showing some positive signs, anchored by improved consumer confidence in Germany, but challenges remain evident.
In the near term, the EUR/QAR exchange rate is expected to trade within a range that reflects moderate fluctuations above its recent average, suggesting stability with limited volatility.
Upside risks include stronger-than-expected economic performance in Germany, potentially boosting the euro. Conversely, a more pronounced decline in global oil prices could exert further pressure on the QAR, impacting its relative strength against the euro.
