A month and a half ago an upward trend was formed, though it can be completed soon. For about two weeks the rates have been in the flat range of 1.5863-1.5974 SGD. Both currencies cannot find enough incentives for growth.
The euro is under pressure due to tensions in trade relations with the US. The ECB also does not support the euro due to its commitment to a soft monetary policy, which is confirmed by recent statements of ECB officials who suppose that the rate can only be be raised after the summer of 2019, and only if the inflation target is reached. A few days earlier, the ECB head also said that he considers soft monetary policy as the most effective at the moment.
The Singapore dollar is unable to take advantage of the weakening of the euro due to weak macroeconomic statistics. In the second quarter of 2018 Singapore's GDP grew less than expected by 3.8%, and retail sales grew by only 0.1% in May. The Singapore stock market index, STI, reached the lowest level for the last 14 months this week.
In the current situation there is a high probability of the uptrend's losing its intensity, but next week the euro may get support with the release of the consumer price index. In the medium term, the most optimal would be the deals to Buy on the trend, which is also confirmed by the MACD and Stochastic oscillators. Entry points to the market can also be considered the levels 1.5863 and 1.5974 SGD. The achievement of the level 1.5974 can be considered the most probable in the near future.
