GBP/QAR Outlook:
GBP/QAR is likely to move sideways as it is trading near its 3-month average. Political uncertainty in the UK and expected monetary policy changes contribute to a lack of clear direction.
Key drivers:
• Rate gap: The Bank of England is adopting a more dovish stance, while Qatari monetary policy remains stable due to a long-standing peg to the US dollar.
• Risk/commodities: Oil prices are at recent highs, which historically supports the QAR due to its relation to global commodity prices.
• One macro factor: Recent political events in the UK have injected volatility, putting pressure on the GBP.
Range:
GBP/QAR is likely to drift within its 3-month range, which has been stable with minor fluctuations.
What could change it:
• Upside risk: A strong performance by the Labour party in upcoming elections could bolster the GBP.
• Downside risk: Continued political instability in the UK may further weaken GBP.
