EUR/QAR Outlook:
Slightly positive, but likely to move sideways as the rate is above its recent average and lacks a clear driver.
Key drivers:
• Rate gap: The European Central Bank (ECB) has held interest rates steady, while Qatar’s central bank recently raised rates, causing a widening rate gap that may benefit the QAR.
• Risk/commodities: Oil prices are currently above average, which strengthens the QAR due to Qatar's oil-based economy.
• One macro factor: Eurozone inflation has dropped below the ECB's target, raising uncertainty about potential future interest rate cuts.
Range:
The EUR/QAR is expected to hold within its recent trading range, reflecting limited volatility.
What could change it:
• Upside risk: A strong shift in ECB rhetoric in favor of tighter monetary policy could bolster the euro.
• Downside risk: Continued weak economic indicators from the Eurozone could pressure the euro lower against the QAR.
