The EUR to SGD exchange rate is currently range-bound.
Key drivers include an interest rate differential where the European Central Bank (ECB) maintains a cautious stance, suggesting potential weakness in the euro. Meanwhile, Singapore's stable monetary policy supports the Singapore dollar (SGD). Additionally, the outlook for economic growth in Singapore is positive, with forecasts rising, while inflation in the Eurozone remains a concern as strong euro valuation could hinder it.
In the near term, the EUR to SGD is expected to trade within a stable range, reflecting its recent volatility of just over 1%.
An upside risk may arise from improved economic data from the Eurozone, potentially boosting the euro's value. Conversely, a downside risk could stem from escalated geopolitical tensions impacting market confidence and further straining the euro.
