The current market bias for GBP to QAR is cautiously bearish as the pound faces potential weakness ahead.
Key drivers include:
- The Bank of England is expected to cut interest rates as inflation eases, diverging from the slower pace of the U.S. Federal Reserve, which maintains a tighter stance.
- Qatar's economic growth appears strong, particularly with increased liquefied natural gas production planned, potentially supporting the QAR.
- Recent fiscal uncertainties in the UK may pressure the pound further, along with stable UK manufacturing data.
The near-term trading range is likely to remain stable above the average levels, reflecting minor fluctuations.
An upside risk for the GBP could arise from unexpected stronger economic indicators or policy shifts from the Bank of England. Conversely, a downside risk might come from escalating fiscal issues or significantly lower oil prices, which could affect Qatar’s economic strength.
