2017 was not successful for the SGD. The euro rose in price significantly against the SGD - from 1.49 to 1.59 SGD. Since April 2017, the downward trend has changed to an upward one. Volatility was extremely high due to the unstable political situation in the EU. On the chart, you can see that the trend was divided into 2 parts, and there are signs of the formation of a new downtrend. Thus, it is likely that the peak has been reached.
The Singaporean economy is able to successfully resist the strong Euro. Data published this week about the GDP of Singapore impacted the SGD value. The GDP In the fourth quarter of 2017 amounted to +3.1 percent, which exceeds the expectations of investors. It should be noted that in the third quarter of 2017, the GDP grew by 5.4 %, also surpassing the expectations of investors. Despite the recently achieved record level for the last 20 years in the manufacturing business activity index, the euro lost in value against the SGD due to the fact that amid strong economic statistics, the ECB is likely to start a program to reduce financial stimulus.
Оn Friday we expect new data about the consumer price index, PMI in the EU, which certainly will affect the rates of the EUR/SGD and the EUR will strengthen. At the moment, the best would be the short deals to SELL.
