EUR/QAR Outlook: The outlook for EUR/QAR is slightly positive, but likely to move sideways, as it is currently above its 90-day average but lacks a strong catalyst for further gains.
Key drivers:
• Rate gap: The European Central Bank is maintaining a cautious approach, with steady interest rates, contrasting with the Qatari Riyal's stable monetary policy linked to the US dollar.
• Risk/commodities: Oil prices are above average, which supports the QAR due to its ties to oil revenues, creating a balance for the EUR/QAR exchange rate.
• One macro factor: Recent improvements in Germany's economic sentiment could bolster the EUR, enhancing its attractiveness against the QAR.
Range: The EUR/QAR pair is likely to hold within its recent 3-month range, maintaining stability amid mixed signals.
What could change it:
• Upside risk: Stronger-than-expected economic data from the Eurozone could provide upward momentum for the euro.
• Downside risk: A significant decline in oil prices could pressure the QAR, potentially causing the EUR/QAR rate to drift lower.