On the market we can see a situation where almost all major currencies are under the pressure of negative factors. The EUR at the moment again is coming under the influence of political factors. Despite the formation of a coalition in Germany, after lengthy negotiations, which means the preservation of Angela Merkel's position, the EUR fell in price due to the elections in Italy, where populist and right-wing parties significantly strengthened their positions. We can say that the election results in Italy repeat Germany's elections, but they differ in that the two parties which have been in power all this time will not be able to agree on the creation of a ruling coalition among themselves. The same applies to the opposition: the Euro-skeptics, having significantly strengthened their positions, won't have enough of an advantage over opponents to form their own government. Thus, in Italy an even more problematic political situation is forming which can continue for years.
Investors expect the ECB meeting, which will take place tomorrow. Likely officials will wait and changes in monetary policy will be postponed for a few months, given that the euro is increasing in price at the moment while inflation is decreasing instead of achieving the target level.
At the moment, the EUR/SGD quotes are held in the frames of the uptrend in favor of the EUR. In the long term the trend will continue, but at the moment there is a probability of price correction, which is confirmed by the Stochastic oscillator, so the short deals in the near future can also be effective.
