During this month the situation has not changed significantly for the EUR/SGD. The rates continue in the frames of an upward trend, though occasionally the Euro is losing stimulus to growth and we can see on the chart a few “micro” flat trends. Since the end of June the rates have consolidated in the range 1.564-1.578 SGD.
This week the rates moved to the the support line. The Singapore dollar had a chance to strengthen and break the support line, but disappointing statistics about the volume of retail sales in Singapore and recently received data about the GDP for the second quarter of 2017 didn't sllow the Singapore dollar to change the situation in its favor. GDP growth for the second quarter was just 0.4% against expectations of 1.1%. YoY, the GDP growth was 2.5%, and didn't achieve the expected level of 2.8%.
In this situation the EUR has a chance to go up against the SGD, considering the impressive statistics about the employment market in Britain and the industrial output volume in the Eurozone. The trade balance in May also achieved a good level of 21.4 billion euro, higher than the previously achieved 17.9 billion in April. At the same time, it's not worth expecting a rapid strengthening of the Euro and out of the specified range. We can see on the chart the formation of a new flat trend. However, the most effective action at this moment would be the deals on the trend, to BUY, which is confirmed by the MACD and Stochastic oscillators. In the medium term we should also pay attention to the entry points at 1.564 and 1.578 SGD. The achievement of these levels would confirm the increasing volatility in the market and the completion of the current “micro” flat trend.
