News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
German Exports Decline On Weakening Euro-Zone Demand

German Exports Decline On Weakening Euro-Zone Demand

Benjamin Spier, Technical Strategist

THE TAKEAWAY: German exports fell an unexpected 1.5% in June -> Weakening demand for exports from Euro-zone countries -> Euro decline

German exports fell 1.5% in June as demand from neighboring single currency countries was sapped by the Euro debt crisis. The 1.5% drop was 0.2% more than expected and follows May’s revised 4.2% rise in exports. Meanwhile, Germany’s trade balance rose to an unexpected 17.9 billion Euros, the highest balance in over a year, as imports unexpectedly fell 3%. May’s trade balance was revised to 15.6 billion, according to the German Federal Statistical Office.

The total value of German exports in June was 76.7 billion Euros, a 7.4% rise in exports from June 2011. Exports to Euro-zone countries were down 3% when compared to June 2011, while exports to countries outside the European Union were up 19.8%. Imports from other Euro-zone countries also fell 2.8% on a yearly basis.

Unlike May, Germany was unable to offset export declines to neighbors with higher exports to other regions, suggesting the country is failing to stave off the harsh effects of the debt crisis. Following the European Central Bank’s last meeting, President Draghi said it’s possible that the bank will take part in a bond purchasing program to help struggling countries lower their lending costs. However, Bundesbank’s Weidmann said he opposes such a plan, and we still haven’t heard of a solution on that issue.

Since the lower than expected German exports were reported, the Euro has fallen 20 points against the US Dollar, towards 1.2370. The currency has traded in an upward trend over the past few weeks, and support could now be found around 1.2350, by the 9-year upward trend line.

German_Exports_Decline_On_Weakening_Euro-Zone_Demand_body_eurusd_daily_chart.png, German Exports Decline On Weakening Euro-Zone Demand

“Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.”

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.