Forex News: German Exports See Surprising Rise in October
THE TAKEAWAY: German exports rise 0.3% in October -> Trade balance down to 15.8 billion Euros -> Euro trading unchanged
German exports surprised economists’ expectations and rose 0.3% in October. The rise in exports (seasonally adjusted) was better than both an expected 0.3% decline and September’s revised 2.4% decline in exports. Germany’s trade balance fell to 15.8 billion Euros from September’s 16.9 billion balance, as imports rose a surprising 2.5%, according to the Federal Statistical Office.
German exported commodities were worth a total of 98.5 billion Euros in October. The current account totaled 13.6 billion Euros, down from September’s revised 17.3 billion current account. The total exports of commodities to countries within the European Union totaled 56.4 billion Euros, 7.8% higher than the amount of exports sent to EU neighbors in October 2011.
The German economy is suffering from the pressures of the Euro debt crisis, and last week the Bundesbank cut its economic forecast for 2012 and 2013 to 0.7% and 0.4% respectively. Improving export numbers could be a good sign for the German economy, and a rise in demand for exports among the country’s European neighbors would also be a sign of improvement for the entire region.
The Euro did not significantly react to the better than expected German exports and trade balance. EURUSD is trading slightly higher in today’s forex markets after opening lower than Friday’s close, following news of Italy PM Monti’s resignation. The pair is currently trading right around 1.2900, and resistance could be provided by the key 1.3000 level.
EURUSD Daily: December 10, 2012