USD/QAR Outlook:
Likely to move sideways as the rate is near its 3-month average and signals are mixed.
Key drivers:
• Rate gap: The US Federal Reserve has held interest rates steady, while the Qatar Central Bank raised rates, influencing the attractiveness of both currencies.
• Risk/commodities: Oil prices are currently above average, which generally supports the QAR due to Qatar's oil exports.
• One macro factor: Increasing geopolitical tensions have prompted a shift in investor confidence and reduced exposure to the USD.
Range:
Expect movement to hold steady within the recent range, with potential fluctuations around the current level.
What could change it:
• Upside risk: A stronger-than-expected US jobs report could boost the USD.
• Downside risk: Continued geopolitical tensions may further weaken investor confidence in the USD.
