The GBP to QAR exchange rate is showing a bearish bias. Key drivers include a widening interest rate differential, as the Bank of England is expected to reduce rates while the Qatar Central Bank (QCB) has recently cut its rates, which may stabilize the QAR. Additionally, the UK's fiscal policy concerns could further pressure the GBP. Economic growth projections indicate a slowdown in the UK, while Qatar anticipates strong growth from expanding liquefied natural gas production.
In the near term, GBP/QAR is expected to trade within a stable range, reflecting its recent activity above the 3-month average. Upside risks could emerge if there's a recovery in US dollar strength, while downside risks are linked to ongoing fiscal issues in the UK, which might exacerbate GBP weakness. The oil price, currently below the 3-month average, could also impact the QAR, given its economy’s dependence on oil revenues.