QAR/USD Outlook: Slightly positive, but likely to move sideways as the rate is near its recent average and lacks a clear driver.
Key drivers:
• Rate gap: The Qatari Riyal remains firmly pegged to the US Dollar, providing stability amid fluctuations.
• Risk/commodities: With gold prices at record highs due to expectations of US Federal Reserve rate cuts, this indirectly supports the QAR.
• One macro factor: Ongoing geopolitical tensions and the potential for further USD policy easing are weighing on the US Dollar's strength.
Range: The QAR/USD is likely to hold within its recent trading range, showing limited movement as the exchange rate stabilizes.
What could change it:
• Upside risk: A strong increase in international reserves could bolster confidence in the QAR, leading to a potential appreciation.
• Downside risk: Increased geopolitical tensions impacting US market stability could further weaken the USD, creating volatility in the pair.