FxNews – In today’s comprehensive EURSGD forecast, we will first scrutinize the current economic conditions in Singapore. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EUR/SGD pair.
Singapore NODX Performance in October 2023
Reuters – In October 2023, Singapore witnessed a decline in its non-oil domestic exports (NODX), but the decrease was less severe than anticipated. The NODX fell by 3.4% compared to the same month last year, a noticeable improvement from the predicted 6.5% drop. This change marks a significant shift from the 13.2% fall recorded in September. Interestingly, this is the 13th month in a row that Singapore’s NODX has contracted, yet this month shows the mildest decrease in this ongoing trend.
Key Sectors: Electronics and non-electronics
The decrease in NODX was influenced by both electronic and non-electronic products, albeit to different extents. Electronic product shipments declined by 5.6%, which is actually an improvement from the 11.6% drop seen in September. This reduction was mainly due to lower shipments in specific categories:
- Integrated Circuits (ICs) saw a 17.6% decrease.
- Diodes and transistors experienced a 19.8% fall.
- Computer parts shipments dropped by 22.9%.
On the other hand, non-electronic product shipments decreased by 2.7%, a substantial improvement from the 13.7% plunge in September. This decline was primarily driven by three product groups:
- Food preparations, which saw a 41.7% reduction.
- Non-electric engines and motors, declining by 55.4%.
- Electrical machinery, with a 29.7% fall.
Singapore’s trade dynamics showed mixed results across different regions. There was a notable decrease in sales to countries like Taiwan, South Korea, the United States, and Indonesia, with drops ranging from 10.5% to 43.7%. However, this was contrasted by increased trade with China and the European Union, where sales grew by 38.5% and 5.9%, respectively. Interestingly, when adjusted for seasonal variations, Singapore’s NODX actually saw a growth of 3.4% in October 2023. This is a positive turn, especially when compared to the 11.1% increase in September, and is higher than the expected 1.5% growth.
Impact on the Economy
The fluctuating trends in Singapore’s NODX are indicative of broader economic shifts. While the consistent contraction over 13 months might raise concerns, the slower rate of decline and the positive growth in certain sectors and regions are encouraging signs. This suggests resilience in specific industries and adaptability in trade relationships. The overall impact on the economy is nuanced. While the contractions could indicate challenges in global trade or production, the recent improvements and growth in key areas highlight potential for recovery and stability in Singapore’s export sector.
EURSGD Forecast: Technical Analyis
The EURSGD uptrend recently showed signs of easing at the 61.8% Fibonacci level. Notably, the pair tested the 50% level last Friday but rebounded within the same trading session, indicating a strengthening bullish market. However, a divergence signaled by the awesome oscillator suggests potential market ranging or a trend reversal.
To gain a deeper insight into the EURSGD price action and market behavior, a closer look at the 4-hour chart is essential. In this timeframe, EURSGD is trading within a bullish flag pattern and remains above the pivot point. The currency pair has repeatedly tested and bounced off the upper line of the flag. Concurrently, the RSI indicator was hovering in the overbought zone, adding another layer of complexity to the analysis.
Given the awesome oscillator divergence observed on the daily chart, analysts at FxNews recommend monitoring the weekly pivot, currently positioned at 1.46. A close below this level could signify an extension of the short bias that began on November 15th, potentially leading to a decline towards the S1 support level and subsequently to the lower boundary of the bearish flag. This bearish scenario gains credence from the November high of 1.47. Until this level is breached, the bullish trend may be considered paused rather than reversed.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.