EURSGD definition

EUR/SGD is the exchange rate between the euro and the Singapore dollar, telling you how many Singapore dollars one euro will buy. It is a cross pair, traded without routing through the US dollar, and it sits in the second tier of forex liquidity: active enough for reliable pricing through European and Asian hours, but with spreads wider than a benchmark major such as EUR/USD.

The euro is the base currency and the Singapore dollar the quote currency, so a quote of 1.4600 means one euro buys 1.4600 Singapore dollars. When the price climbs the euro is gaining on the Singapore dollar, and when it slips the euro is losing ground. You trade it as a forex CFD, taking a position on the rate rather than converting cash: go long if you think the euro will rise, short if you think it will fall. Each pip is the fourth decimal place, and your profit or loss is the number of pips multiplied by your position size.

The pair is pulled between two very different policy regimes. The European Central Bank sets interest rates outright to steer eurozone growth and inflation, while the Monetary Authority of Singapore guides the Singapore dollar within an undisclosed trade-weighted band rather than targeting a rate. That makes EUR/SGD as much a story about regional trade flows and the strength of the managed Singapore dollar as it is about eurozone data.