EUR/QAR Outlook: The outlook for EUR/QAR is likely to increase as the rate is currently above its recent average and at recent highs, supported by stronger oil prices boosting the euro.
Key drivers:
• Rate gap: The European Central Bank is maintaining a stable policy stance while the Qatari Riyal remains pegged to a strong US dollar, providing support to the euro in the pair.
• Risk/commodities: Oil prices are currently on the rise, exceeding recent averages, which typically enhances the strength of the euro as higher oil prices reflect economic activity and demand for currencies connected to energy.
• One macro factor: The Eurozone's projected lower inflation trend suggests that price pressures are under control, supporting the euro's stability in the near term.
Range: Movement in the EUR/QAR pair is likely to test recent highs, reflecting current strong demand.
What could change it:
• Upside risk: A significant increase in international reserves for Qatar could improve economic stability and strengthen the QAR.
• Downside risk: Renewed geopolitical tensions could affect global market confidence, potentially weakening the euro against the QAR.