Is it a good time to buy the Euro from Singapore Dollars?

EURSGD Forecast highlights: 

• EURSGD dropped below range support at 1.500 due to risk off sentiment
• Higher global energy costs denting Euro’s economic prospects
• Watch for a further decline into 1.450-1.460 if geopolitical tensions escalate

How has EURSGD performed recently?

A year ago, the Euro rebounded strongly against most currencies, Singapore Dollar included. As you can see from the chart below, the Eurozone currency suffered from persistent severe selling up until Feb 2025.

Then, it revived sharply. Perhaps due to short covering, perhaps due to a drastic change in outlook, the Euro gained hundreds of basis points in a matter of days. This rally lasted well into the third quarter of last year.

EURSGD even managed to rally to new long-term highs (1.520) as late as January 2026.

But this revival has gone into reverse recently. Prices dropped sharply beneath a series of support levels (1.500, 1.480), suggesting a minor loss of confidence on the Euro.

What is causing traders to dump the Euro? Escalating geopolitical tension could be one reason, as the bloc does not perform well during this phase. 2022, for example, was an extremely difficult year for the Eurozone due to surging energy costs. This year may see a repeat of this issue.

But bear in mind the same market factor, repeated four years apart, may not create the same impact on markets.

Technically the rate is on a downtrend, but there are further support levels underneath (1.440-1.450). A test of this support band is potentially on the table if global economic and geopolitical tensions escalate.

Is it a good time to buy the Euro?

If holders of SGD need the Euros now, the current rate (around 1.470-1.480) is a reasonable level to buy EUR.

Despite Euro’s recent weakness, a slide back to the lows at 1.400 may not happen soon, unless the Euro crashes from a severe bout of panic selling. The more realistic target is around 1.460-1.450.

Of course, SGD holders may wish to wait further to achieve a better price, say, below 1.450. But this strategy entails some price risks because the rate could extend the rebound back to 1.490-1.500.

Will the Euro get stronger in 2Q of 2026?

The Euro has come under increasing pressure these days. One of the reasons is the sudden spike in natural gas. Remember that in 2022 the Eurozone suffered a big economic setback from surging natural gas (and crude oil) prices.

Investors are fearing a repeat this episode. Crude oil prices have doubled since January ($60 to $120); while natural gas is climbing rapidly as gas fields in Qatar and Iran are put out of action.

Once higher energy prices are fed into the economic system, inflation rates are bound to go up. Because inflation rates are heading north, interest rates would have to go up too.  This will hit indebted entities because of higher servicing costs.

Governments’ finances will take a hit, as would household and companies. As a result, economic activities contract due to lower consumption and investment. A downward spiral is then created.

This is the economic circular logic, which is hard to break because of the connectivity of the global trading system.

Already, the Eurozone long-term 10-year bond yield is within touching distance of establishing new cyclical highs above 3% (see below). Any rally above this level would decisively break the resistance. The next target is at 3.5%.

The ECB recently signalled it is ready for any massive surprise hike in actual inflation, and is ready to raise the policy rate from the current 2.0%.

Against this economic backdrop, the impact on Euro would be quite negative. The downside risk for the Euro is high and rising.

But remember this is not 2022. The Eurozone has already tackled the energy crisis once, and they will be able to fend off the drastic drop in energy supply from the Strait of Hormuz again. Well, they have to.

The fact the Euro has yet to collapse like it did back in 2022 is a signal that things will perhaps move differently this time round. Yes, the Euro may depreciate, but probably not on the scale like 2022. That’s my optimistic take.

 

What is the EURSGD forecast in weeks?

According to the local banking group OCBC, EURSGD is expected to trade sideways in the months ahead (at around 1.50-1.52).

Given the fast-moving market prices, these forecasts are already slightly out of date, as prices are now trading at 1.46-1.48. With the situation in the Gulf increasingly volatile, analysts would be scrambling to revise forecasts made only a month ago.

Therefore, I’d keep a close watch daily EURSGD prices in search of potential buying opportunities.

Source: OCBC (Mar 2026)