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

EURSGD Forecast highlights: 

• EURSGD surged from 1.400 support; probing to break 1.480
• Shifting macro conditions since March-2025 favouring the Euro
• Until economic turbulence eases, EURSGD may appreciate further

How has EURSGD performed recently?

A currency can keep trending against another when the underlying economic conditions are suitable.

EURSGD is a case in point. During 2021-2024, the Singapore Dollar has appreciated steadily against the Euro. The rate first dropped significantly from 1.630 to 1.380. After a multi-month rebound, prices then dropped again in the second half of 2024 (1.460 to 1.400).

But many economic conditions have changed drastically this year – from Trump’s tariffs to EU rearmaments to monetary policies. This means those macro factors that have facilitated buying of SGD against EUR have diminished. The long-running trend in EUSGD has suddenly reversed.

Indeed. EURSGD rocketed from 1.400 to 1.500 in a matter of weeks. This rally erased much of the gains accumulated last year. And after a retracement to 1.450. the rate has rebounded sharply to re-test the overhead resistance at 1.480-1.500 (see below). A breakout seems imminent.

If this ceiling goes, prices may rally above the psychological 1.500 quickly. The absence of resistance until 1.580 means the rate has plenty of room to advance.

For this breakout to fail, traders must be confident enough to see a return of previous factors that caused the rate to decline (SGD stronger). Until that happens, the direction of travel here points north.

Is it a good time to buy the Euro?

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

Given what is happening in financial markets right now, I doubt EURSGD will return to its January lows at 1.400 at any time soon. For sure, many EUR buyers would love to see 1.400 again. But sadly, we can only deal with the rate right now.

Of course, SGD holders may wish to wait further to achieve a better price, say, around 1.450. But this strategy entails some price risk. Instead of falling, the rate could rally further into the 1.500-1.550 band.

Will the Euro get stronger?

After shorting the Euro for some years, Euro bears have suddenly abandoned the trade. Perhaps it was the April tariff shock that did the trick, or perhaps it is the realisation that Europe may, finally, outperform US economically.

Whatever the reason, the Euro is experiencing a firm recovery. To the point that the president of the European Central Bank, Christine Lagarde, recently stressed that the Euro could emerge a winner from the turbulent US policies.  “This moment of change,” she concluded “is an opportunity for Europe: it is a “global euro” moment.”

The rhetoric is persuasive; but the key to this transformation still lies in the economic reality. To sustain Euro’s growing international status requires a more dynamic continent. For one, the bloc needs to generate higher real GDP, perhaps above the 2 percent level.

But remember exchange rates are all about relative comparison.

The fact that SGD is weakening across the board is because its own growth outlook is dimming. In the latest MAS Survey of Professional Forecasters (June), the island’s 2025 GDP prediction was lowered from 2.5-2.9% to 1.5-1.9%. This is due to lower volume of trade globally. As a result, the Singaporean central bank is easing its monetary policy through the foreign exchange market (specifically, via S$NEER).

In sum, EURSGD’s recent reversal is about shifting relative economic conditions between the Eurozone and Singapore. In this new economic regime, investors favour the Eurozone. How long will this new trend last? Perhaps a little while longer, until SGD’s growth outlook return to the January level.

Source: Yardeni.com

What is the EURSGD forecast in weeks?

According to the local banking group OCBC, EURSGD is expected to appreciate further in the months ahead. The bank anticipates the rate to reach 1.500 by the end of the year (see below).

As that target level is already nearby, EURSGD’s northward march may breach this target soon. Volatile economic conditions indicates the potential for large swings in EURSGD.

Therefore, keep a close watch on the exchange rate in search of potential trading opportunities.

Source: OCBC (June 2025)