The rates continue in the frames of an uptrend. The value of the EUR against the SGD reached its highest level since December 2014. Compared to last year, the EUR is devoid of the political risks that it had due to elections in the leading EU countries. This year the EUR is supported by strong economic statistics, although after reaching the highs there was an economic correction, which affected the value of the Euro.
This week investors expected new data on a few economic indicators, but were skeptical about the possible strengthening of the euro related to impressive economic statistics, due to the lack of positives in that regard. The latest data showed a decrease in consumer confidence. In addition, the PMI manufacturing index amounted to 56.6 points, which is the lowest level since July 2017. Amid such data, the ECB announced a likely refusal to curtail the stimulating monetary policy in the near future. They are even ready to increase the volume of purchases of securities to stimulate the economy. However, the data on inflation growth in March coincided with investors' expectations, as well as the data on the unemployment rate in the eurozone. Inflation in March rose 1.4% against 1.1% in February, which is a signal for the ECB to curtail stimulus.
The SGD managed to consolidate at the level of 1.6-1.63 SGD amid a long price correction. This was facilitated by data about the manufacturing PMI index of business activity, which rose in March to 53 points due to the increase in production volumes and orders in the industry. A higher price index in Singapore was seen only in January 2018, when a record level of 53.1 points was reached.
The rates at the moment are close to the support line, and after testing it they turned up in favor of EUR. In this situation the most optimal would be the deals on the trend, which is confirmed by the Stochastic oscillator.
