QAR/USD Outlook:
Slightly positive, but likely to move sideways; the rate is near the 90-day average and lacks a clear driving force.
Key drivers:
• Rate gap: The Qatar Central Bank's interest rate adjustments aim to bolster the QAR, contrasting with the Federal Reserve's recent decision to hold rates steady amid uncertainty.
• Risk/commodities: A recent surge in gold prices, partly driven by expectations of future U.S. interest rate cuts, may indirectly impact QAR due to its peg to the USD.
• Macro factor: Recent geopolitical tensions and trade policy concerns have led to a decline in demand for U.S. assets, influencing the USD’s value.
Range:
The QAR/USD is likely to hold steady within its recent range with minimal fluctuations.
What could change it:
• Upside risk: A sudden increase in U.S. economic indicators could bolster the USD, creating upward pressure on the QAR.
• Downside risk: A further decline in U.S. dollar demand driven by ongoing geopolitical issues could exert downward pressure on the QAR.
