The recent exchange rate forecasts for the SGD to EUR suggest a complex interplay between both currencies influenced by their respective economic indicators and geopolitical events. The SGD is currently valued at 0.6635 against the EUR, which is near its three-month average. The SGD has maintained a stable trading range of 1.7% in the past three months, suggesting relatively low volatility in comparison to the fluctuations seen in the Euro.
Analysts note that the euro remains subdued as it grapples with a negative correlation to the US dollar. Despite positive indicators from the Eurozone, including better-than-expected GDP growth and the European Central Bank's (ECB) decision to keep interest rates unchanged, the EUR has faced downward pressure. Furthermore, the anticipated release of Eurozone inflation data may further influence the euro's strength, with expectations of a slight moderation possibly leading to renewed speculation about future ECB rate cuts.
On the other hand, the Singapore dollar is supported by ongoing economic resilience. The Monetary Authority of Singapore (MAS) has maintained its monetary policy in light of a robust GDP expansion of 2.9% year-on-year in Q3 2025, well above expectations. However, the MAS also downgraded its core inflation forecast, suggesting easing inflationary pressures which could impact the SGD's competitiveness against the euro.
Moreover, geopolitical tensions, particularly related to the ongoing conflict in Ukraine, continue to weigh on euro stability. The ramifications of this conflict on energy supplies and global trade are critical, as they could spark further fluctuations in the euro's value, especially in light of the euro’s sensitivity to macroeconomic and political developments within the Eurozone.
Additionally, oil prices, which are trading 1.7% below their three-month average, continue to play a significant role in currency values. Volatility in the oil market, as evidenced by a 15% trading range in Brent Crude OIL/USD, could have downstream effects on inflation and investor sentiment within both the Eurozone and Singapore, potentially impacting the SGD/EUR exchange rate.
In summary, forecasts for the SGD to EUR are shaped by upcoming economic data releases, ongoing geopolitical tensions, and variances in each region's economic momentum. As these factors unfold, market participants should monitor developments closely for adjustments in their international transaction strategies.
