The EUR/SGD currency pair settled below recent high of 1.4646, its strongest level since May 8th, after Singapore’s CPI data and as Euro Area’s negotiated wage growth slowed markedly in Q1, supporting the case for further ECB interest rate cuts.

Additional pressure on the Euro came after fresh US tariff threats.

New ECB data showed negotiated wages in the Euro Area rose 2.38% year-on-year in the first quarter of 2025. It has been the smallest YoY increase since Q4 of 2021 and followed a 4.12% YoY growth in Q4 of 2024. The data aligned with the European Central Bank’s view that wage-driven inflation pressures were diminishing.

Markets have priced in an increased chance that the European Central Bank would lower interest rates next month.

On the trade front, US President Donald Trump said on Friday that he was recommending a flat 50% tariff on all products imported from the European Union, effective June 1st. Trump also stated that discussions with the European Union were “going nowhere.”

The announcement reignited investor concerns over the impact of tariffs on global economy.

In Singapore, annual consumer inflation remained steady at 0.9% in April – the lowest rate since February 2021.

And, annual core CPI inflation picked up to a three-month high of 0.7% in April from 0.5% in March.

The EUR/SGD currency pair settled 0.14% higher at 1.4599 on Friday.

The exotic Forex pair gained 0.58% for the week.