USD/QAR Outlook:
Slightly positive, but likely to move sideways as the rate is near its recent average and lacks a strong driver.
Key drivers:
• Rate gap: The Federal Reserve has maintained interest rates, while the Qatar Central Bank has slightly increased rates, supporting the QAR against the USD.
• Risk/commodities: Oil prices are currently above their recent average, which usually bolsters the strength of the QAR due to Qatar's oil-dependent economy.
• Macro factor: The emergence of global de-dollarization, with BRICS nations planning to increase trade in local currencies, could ultimately weaken the USD.
Range:
Expect the USD/QAR to hold within its recent range as it has been trading stable without significant fluctuations.
What could change it:
• Upside risk: A rebound in key US economic indicators, such as better-than-expected payroll data, could strengthen the USD.
• Downside risk: Intensified geopolitical tensions affecting investor confidence in the USD could lead to a decline.