The EUR to SGD exchange rate recently stands at 1.5042, staying close to its three-month average and exhibiting stability within a 1.5% range. Analysts note that the euro's gains are currently capped by disappointing economic data from Germany and the Eurozone, with the latest industrial production and retail sales falling short of expectations. As the euro typically reacts negatively to underwhelming economic indicators, this trend is contributing to a cautious outlook for its appreciation.
The Eurozone’s economic performance is increasingly influenced by several key factors, including the European Central Bank's (ECB) policies, which continue to dictate the euro's trajectory. A recent drop in the Composite Purchasing Managers' Index (PMI) to 49.7 suggests a contraction in business activity, further complicating the euro's recovery prospects. Additionally, geopolitical tensions, particularly related to the ongoing conflict in Ukraine, play a critical role in shaping market sentiment and may lead to heightened volatility for the euro against other currencies like the Singapore dollar.
In contrast, the Singapore dollar (SGD) has shown resilience, supported by a stronger-than-expected GDP growth of 2.9% year-on-year for Q3 2025. The Monetary Authority of Singapore has maintained its current monetary policy settings, expressing confidence in the local economy despite global uncertainties. Analysts believe that stable inflation, alongside robust economic performance, could support the SGD against the euro in the near term.
Moreover, recent trends in oil prices, currently at $63.68, have been somewhat concerning, sitting 3.2% below the three-month average. Fluctuations in oil prices can also impact the euro, as the eurozone is heavily reliant on energy imports. Analysts suggest that protracted low oil prices could further strain the euro's strength, especially if paired with continued economic stagnation in key member states.
Overall, while there is potential for the euro to recover if positive economic data emerges or if a resolution in geopolitical tensions occurs, the immediate outlook remains cautious. The interplay between ECB policies, economic indicators within the Eurozone, the strength of the SGD from local economic resilience, and external factors such as energy prices will be paramount in determining future movements in the EUR to SGD exchange rate.
