Forex Market: EUR/SGD forecast for Monday

During Friday’s trading session EUR/SGD traded within the range of 1.7063-1.7105 and closed at 1.7083, losing 0.04% for the day and 0.29% for the week.

Fundamental view

Euro zone

Consumer Confidence in Germany, the largest economy in the Euro zone, probably remained unchanged at 8.5 in June, according to median forecast by experts. The Gfk Consumer Confidence index is calculated on the basis of a study known as “GfK-Wirtschaftsdienst Konsum – und Sparklima” (Economic Survey Gfk on consumption and savings). It is published by the market research group – GfK Marktforschung. The study is based on monthly interviews with consumers on behalf of the European Commission. A representative sample of about 2 500 selected participants were asked questions about their expectations of the economic situation and how they evaluate their own financial situation. The market research group – GfK Marktforschung is scheduled to publish the official data at 6:00 GMT on Monday (May 26th). A higher-than-expected increase in the consumer confidence index would support demand for the euro.

Singapore

Annualized industrial production in Singapore probably rose 6.5% in April, according to the median estimate by experts, following a 12.1% increase in March. The index of industrial production reflects the change in overall inflation-adjusted value of output in sectors such as manufacturing, mining and utilities in the country. The index is sensitive to consumer demand and interest rates. This explains why industrial production is considered as an important tool for future GDP and economic performance forecasts. It is a coincident indicator, which means that changes in its levels generally echo similar shifts in overall economic activity. In case industrial output expanded more than anticipated, this would have a bullish effect on Singaporean dollar. Statistics Singapore is expected to release the official report at 5:00 GMT on Monday (May 26th).

Technical view

According to Binary Tribune’s daily analysis, in case EUR/SGD manages to breach the first resistance level at 1.7104, it will probably continue up to test 1.7126. In case the second key resistance is broken, the pair will probably attempt to advance to 1.7146.

If EUR/SGD manages to breach the first key support at 1.7060, it will probably continue to slide and test 1.7042. With this second key support broken, the movement to the downside will probably continue to 1.7019.