EUR/SAR Outlook:
The EUR/SAR rate is slightly positive, trading above its recent average and near its 3-month highs. The current strength of the euro against the riyal is supported by a rise in oil prices.
Key drivers:
• The European Central Bank is maintaining interest rates amid economic uncertainty, which impacts the euro's value positively.
• Oil prices are currently above their average, providing support to the Saudi economy, which can influence the riyal's strength.
• Weak German consumer confidence may lead to fluctuations in the euro as economic data out of the Eurozone remains mixed.
Range:
The EUR/SAR is likely to drift within its recent 3-month range, as current factors neither push it significantly higher nor lower.
What could change it:
• Upside risk: A better-than-expected Eurozone economic sentiment index could boost the euro further.
• Downside risk: Further deterioration in German economic data could pressure the euro and lead to a decrease against the riyal.