GBP/QAR Outlook: The outlook for GBP/QAR is slightly positive but likely to move sideways, as the rate is above its recent average and near recent highs without strong current drivers.
Key drivers:
• Rate gap: The Bank of England's cautious approach to rate cuts contrasts with Qatar's projected GDP growth, maintaining QAR's stability.
• Risk/commodities: Oil prices are trading at recent highs, benefiting Qatar's economy and providing buoyancy to the QAR.
• One macro factor: Rising geopolitical tensions and US tariffs are pressuring the GBP, complicating its outlook further.
Range: The GBP/QAR is likely to hold within its recent 3-month range as it lacks strong directional signals.
What could change it:
• Upside risk: A significant improvement in UK economic data could bolster GBP.
• Downside risk: Continued escalation of US tariffs affecting UK trade may weaken the GBP further.