GBP/QAR Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
• Rate gap: The Bank of England's dovish stance contrasts with the Qatar Central Bank's recent rate hikes aimed at economic stability.
• Risk/commodities: Oil prices are currently above average, which can support the Qatari Riyal, given its close ties to oil revenues.
• One macro factor: UK retail sales showed strong growth, but mixed economic indicators create uncertainty for the GBP's outlook.
Range:
Expect movement within the recent 3-month range, with potential for slight fluctuations without testing extremes.
What could change it:
• Upside risk: A shift to a more hawkish stance by the Bank of England could support the GBP.
• Downside risk: Continued weak economic indicators in the UK may push the GBP lower against the QAR.