The rates of the EUR/SGD continue to be in the frames of the downward trend. It was expected that this week volatility on the market will decrease until the results of the elections in France become available, but yesterday the UK's Prime Minister Theresa May announced early parliamentary elections. The market reacted positively and the Pound strengthened, which had an impact on the value of the EUR.
The decision about early elections is perceived positively because it can remove the uncertainty on the question of Brexit. Results of the UK's elections will show surely if they move towards the exit from the EU or, in case of a victory for the opponents of Brexit, will finally drop this question. Thus, investors expect from the new Parliament a clear political and economic course.
The Singapore dollar was under significant pressure since yesterday. Stable macroeconomic statistics were unable to change anything amid significant political events, which directly affect the future of the EU.
At the moment the Stochastics and MACD oscillators are unanimous in the decision to open short deals. After a significant price hike after the aforementioned news, the rates may continue in the frames of the downtrend. Now the rates have consolidated and can go down, so in short-term trading the deals to SELL are the best solution. In medium-term trading it is better to wait a few days before the elections in France. Based on those results we can obtain an absolutely new value of the Euro in case of a victory for Marine Le Pen, otherwise it will strengthen for some time.
