The exchange rate forecast for EUR/SGD reflects a somewhat stable environment for both currencies, with various economic indicators impacting their strength. As of recent data, the EUR is trading at 1.5007, which is only 0.6% above its three-month average of 1.4915, showing minimal volatility within a 2.7% range between 1.4665 and 1.5067.
The euro has shown muted movement lately, despite a rise in German inflation, with consumer price index figures increasing to 2.2% in August, slightly above expectations. Analysts suggest that upcoming Eurozone unemployment figures, currently at a record low of 6.2%, may provide modest support for the EUR if they remain stable. Additionally, the HCOB Eurozone Purchasing Managers' Index has demonstrated robust growth, which aligns with forecasts of steady economic activity within the Eurozone.
However, concerns have been raised by European Central Bank (ECB) officials regarding the euro's strength, which has appreciated significantly against the US dollar throughout 2025, potentially affecting Eurozone export competitiveness. The IMF projects moderate growth for the region against a backdrop of geopolitical risks and trade tensions, particularly relating to the ongoing war in Ukraine.
Conversely, the Singapore dollar (SGD) presents a mixed outlook. The Monetary Authority of Singapore (MAS) has adjusted its monetary policy, initially easing measures in April before maintaining a steady stance amid better-than-expected economic growth in Q2 2025. The fallout from the U.S. tariffs on Singaporean goods continues to loom, creating uncertainty that could affect future policy direction. The SGD has also been swayed by sentiments in regional markets, particularly in relation to the Chinese yuan, with recent bearish positions impacting currency stability.
Oil prices are also a considerable factor, with crude oil trading at around 67.39, which is 2.2% below its three-month average. The volatility in oil prices, which have fluctuated significantly over the past months, can indirectly affect the euro and Singapore dollar through inflationary pressures and consumer demand dynamics.
In conclusion, the EUR/SGD exchange rate may experience pressure from both economic conditions in the Eurozone and developments within Singapore. Traders and businesses engaging in international transactions should consider these factors, keeping an eye on upcoming economic data that could influence currency movements.
