Euro Area International Trade in Goods Surplus EUR19.1 billion

Eurostat have estimated that the total of euro area export of goods in February reached 163.5 billion euros, a year on year increase of 1%.

Imports from the rest of the world stood at $144.4 billion, a rise of 2% in contrast to February last year, resulting in a 19.1 billion euros surplus.

This was less than the surplus recorded for February last year, which reached EUR 20 billion.

There was also an increase of intra-euro area trade, which rose to 141 billion euros in February 2016, up by 3% compared with February 2015.

For the whole of the European Union (EU) the estimate of exports of goods to the rest of the world for February was 137.1 billion euros, down from the 138.2 billion euros a year ago, a reduction of 1.2%.

Imports from the rest of the world stood at EUR 134.1 billion, down by 2% compared with February 2015, where the total was EUR 136.4 billion.

Subsequently, the EU recorded a EUR 3 billion surplus from trade with the rest of the world in February, higher than the EUR 1.8 billion figure than a year ago.

Pound Begins the day Climbing on the Dollar

The pound has gradually appreciated on the dollar this morning GMT, and is currently buying $1.417, having started the day at $1.414.

Although the GBP/USD rate has been chaotic since the major economic data that has been released in both countries.

The Bank of England voted unanimously in favour retaining interest rates at 0.5%, this was the third consecutive undisputed vote on interest rates.

The amount that would be allocated to the UK’s quantitative easing programme has remained at £375 billion, in a move which is opposite to the European Central Bank, and the expansion of their asset purchasing expansion programme.

In the United States the latest consumer price index was 0.1%, even though this was an improvement on the 0.2% decline in February, the index was expected to reach 0.2%.

FC Exchange analyst Daniel Wray wrote in his daily report that the pound will be effected by market behaviour that will be driven by any turn of events that surround the UK’s possible exit from the European Union.

The EUR/USD rate is currently $1.126, having fell slightly from $1.127, fluctuations in the rate could increase after the release of the influential German ZEW economic sentiment index on Monday.

Volatility could follow as there is a good deal of significant data next week, writes Daniel Wray, so it could be an interesting time for the euro and a week to watch closely.

Positive Data for Germany

The number of employees in the German manufacturing sector totalled 5.4 million at the end of February, and increase of 54,000 representing a year on year 1% rise.

Earnings in the sector also increased, reaching 20.6 billion euros, which was 3.8% more than February last year.

Turnover in the accommodation and food services industry increased by 3.6% in February in real terms and 5.6% in nominal terms, compared to February a year ago.

In the first two month of this year, turnover in the German accommodation and food service activities increased by 2.5% in real terms, and by 4.7% in nominal terms.