The strengthening of the Euro which began after the first round of elections in France continues. The political risks for the EU have decreased and the future of the union does not cause serious doubts among investors anymore. Good economic indicators in the Eurozone allow the Euro to grow against most currencies, including the SGD. We can see that on the chart of the EUR/SGD a rapid upward trend which may continue in the future. The value of the Euro reached the price of 1.5455 SGD which is the highest level for the last 12 months. This week the Euro also strengthened significantly against the USD, reaching a six-month high.
Data obtained on the GDP matched the expectations of investors, as did recently received data about the consumer price index, so they continue to invest in the Euro. At the same time, the Singapore dollar is losing value and can't find an incentive to strengthen. Today's reports about the Domestic Exports of Non-Oil (NODX) in Singapore decreased to -0.7 % yoy while investors were expecting 12.4% growth considering that last month NODX volumes increased up to 16.5% yoy. It should be noted that the fall in exports has been fixed for the first time in six months, so the market took it negatively.
The new upward trend will probably continue, but in the near future we can expect a price correction. The MACD, Stochastics, and RSI oscillators unanimously indicate a good moment to open the short deals against the trend, though in medium-term trading it is better to open the deals on the trend.
