EUR/OMR Outlook:
Slightly positive, but likely to move sideways as the rate remains above its recent average and lacks a clear driver.
Key drivers:
• Rate gap: The European Central Bank (ECB) is maintaining interest rates, allowing the Euro to strengthen against the Omani rial.
• Risk/commodities: Rising oil prices, currently considerably above average, may support the Euro, given its relationship with the European economy.
• One macro factor: Eurozone inflation has recently fallen below the ECB's target, raising concerns about future interest rate adjustments.
Range:
Expect the EUR/OMR to hold within a stable range, without testing the extremes.
What could change it:
• Upside risk: A significant improvement in Eurozone economic indicators could bolster the Euro's value.
• Downside risk: A potential drop in oil prices could negatively impact the Euro, especially if the economic backdrop weakens further.