EUR/USD Falls on Surprise Euro Area Trade Deficit
17 Mar 2017 10:28, GMTTalking Points
- The Euro Area recorded its first trade deficit since January 2014.
- The single currency fell, giving back some of its recent gains.
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The latest release from Eurostat showed the Euro Area record a EUR0.6 billion trade deficit with the rest of the world in January, sharply lower than expectations of a EUR22 billion surplus and December’s reading of EUR24.5 billion. Exports to the rest of the world increased stood at EUR163.9 billion, up 13% compared to January 2016, while imports from the rest of the world stood at EUR164.5 billion, a rise of 17% compared to January 2016.
Source: Eurostat.
Today’s data showed the first trade gap since January 2014 and the biggest trade gap since January 2013.
The release, normally a low-level impact event, pushed the single currency lower against the USD, partially reversing some its recent gains post-FOMC.
Chart EURUSD 5-Minute Timeframe (March, 2017)
--- Written by Nick Cawley, Analyst
To contact Nick, email him at Nicholas.cawley@ig.com
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