EURSGD is a cross pair that consists of the euro and the Singapore dollar. The Euro is the official currency of most member states of the European Union and the second most traded currency in the world after the US dollar. The Eurozone is a group of European states that use the euro as official legal tender. Since the single European currency represents the economies of all countries in the Eurozone, its rate is influenced by each of these states' financial and political performance. Crises in one or more EU member states can significantly affect the euro exchange rate.
Singapore's highly developed economy is focused on exporting household appliances, medicines, information technology products, and shipbuilding. Along with the macroeconomic indicators of Singapore (employment data, GDP, inflation, etc.), the national currency is influenced by the volume of the country's exports. The Singapore dollar is now ranked among the most stable world currencies.
The EURSGD pair is less liquid than the main trading instruments EURUSD, GBPUSD, USDCHF. The chart of euro against the Singapore dollar is characterized by slight fluctuations. That's why it is believed that trading the EUR/SGD pair is most profitable in the medium term. Both currencies that make up the pair are heavily influenced by the US dollar. In this regard, to make a correct analysis of the EURSGD pair, traders should pay attention to the main macroeconomic data of the US, including the refinancing rate, the GDP, labor market data, and inflation, as well as monitoring the situation in the eurozone and Singapore.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
