The EUR to SAR exchange rate is currently biased towards bearish movements.
Key drivers include the interest rate differential, with the ECB maintaining rates while managing inflation concerns. The ongoing geopolitical tensions in Ukraine continue to exert pressure on the euro, affecting overall market stability. Additionally, a modest upward trend is expected for Eurozone GDP, supported by increased military spending and fiscal measures.
In the near term, the EUR to SAR exchange rate is likely to trade within a stable range, reflecting limited volatility based on recent price data.
An upside risk to this outlook could arise from stronger-than-expected economic data from Germany, which might boost the euro. Conversely, a sustained drop in oil prices could weigh on the SAR's strength against the euro, given the correlation between oil prices and the Saudi economy.