Forex - EuroZone Trade shows deficit, German PPI increases. | CountingPips Forex & Currency Trading Blog

July 18, 2008 - Forex Economic News

Forex - EuroZone Trade shows deficit, German PPI increases.

The Eurozone's international trade balance turned into a deficit in May according to a data release from Eurostat today. The eurozone's 15 countries that use the euro currency showed a trade deficit of 4.6 billion euros in May after a surplus of 2.5 billion euros in April. May's deficit also fell compared to May 2007 which showed a surplus of 1.4 billion euros. The deficit surpassed market expectations as market forecasts had expected a deficit of 1.0 billion euros for the month. Eurozone seasonally adjusted imports and exports decreased by 1.3 percent and 3.4 percent, respectively.

The trade deficit for all of the 27 nations in the European Union also increased in May. The EU27 posted a deficit of 21.5 billion euros after a deficit of 15.4 billion euros in April. May's deficit was 6.8 billion euros wider than the deficit of 14.7 billion euros in May of 2007. In seasonally adjusted terms, May's exports declined by 4.0 percent while imports declined by 1.3 percent.

German Producer Prices increase in June.

Data released today on Producer Prices in Germany showed prices increased the most in over 25 years in June. The Producer Price Index showed an increase of 6.7 percent in June when compared with June of 2007. June's annual increase is the most since March of 1982 which produced a 7.2 percent gain. The monthly change in producer prices showed a gain of 0.9 percent from May which had registered a gain of 1.0 percent.

Euro declines against USD in Forex Trading.

The euro has been on the decline against the U.S. dollar in forex trading since attaining a new record high against its American currency counterpart on Tuesday at 1.6038 dollars per euro. The EUR/USD pair has come down from that high to trading in a range between 1.5860 and 1.5815 today. The euro looks to be finishing the week down against the USD, despite the new record high, after advancing against the USD three out of the last fours weeks.

Tags: trade balance, euro, usd, producer prices, forex trade

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