THE TAKEAWAY: German trade balance widens -> Current account shrinks -> Euro unmoved as focus remains on broader trends
German exports and imports grew as the trade balance widened to EUR 14.7B in February, the German stats bureau said today. The expected trade balance number was EUR 12.0B. The German current account came in at EUR 11.1B versus the expected 12.0B.
Although the German manufacturing contracted over the past months as consumer confidence eroded, today’s positive release was seen as a sign that investors have taken a positive view of recent European efforts to resolve the ongoing debt crisis. However, the Euro was largely unmoved by the data as focus remained on broader macro trends.