SGD/EUR Outlook: Slightly weaker, but likely to move sideways, as the rate is near its recent average and lacks a clear driver.
Key drivers:
• The Monetary Authority of Singapore has adjusted its policy to a more accommodative stance, which may weigh on the Singapore Dollar.
• The Euro is facing pressure from a lack of strong data and recent comments from the European Central Bank, stalling its performance.
• Eurozone inflation is projected to decrease, reflecting stable conditions but not a strong push for the euro's appreciation in the near term.
Range: Movement is likely to drift within the established range, as the rate is near 14-day lows and the 3-month average suggests limited volatility.
What could change it:
• An unexpected shift in ECB policy could strengthen the euro.
• Renewed trade tensions or U.S. economic concerns could further sap the Singapore Dollar’s value.
