QAR/USD Outlook:
The QAR/USD rate is likely to move sideways as it is currently near its recent average and mid-range. The stability of the Qatari riyal's peg to the US dollar supports this outlook, despite mixed factors influencing both currencies.
Key drivers:
• Rate gap: The Qatari riyal remains pegged to the US dollar, which provides a consistent foundation for exchange rate stability.
• Risk/commodities: The rise in safe-haven demand for the US dollar, driven by geopolitical tensions, adds upward pressure on the USD against other currencies, including the QAR.
• One macro factor: Recent labor market data in the US indicates stronger economic conditions, which could further bolster the dollar if sustained.
Range:
Expect QAR/USD to hold within its recent range as market reactions to economic data unfold.
What could change it:
• Upside risk: A significant increase in US interest rates could drive the USD higher.
• Downside risk: A deterioration in US economic indicators may pressure the dollar lower.
