German Trade Data Rounds Off a Bad Week on the Economic Data Front

It’s been another quiet start to the day on the Eurozone economic calendar this morning.

Key stats included trade data from Germany.

The German Economy

In August, Germany’s trade surplus narrowed from €17.7bn to €13.0bn. Economists had forecast a narrowing to €15.8bn.

According to Destatis,

• German exports fell by 1.2%, while imports increased by 3.5% when compared with July 2021.
• In August 2021, exports of goods increased by 14.4% to €104.4bn, year-on-year.
• Imports increased by 18.1% to €93.8bn.

Trade with EU countries

• German exports to EU member states increased 15.7%, while imports from EU member states rose by 11.2%.
• To euro area countries, exports were up 16.9%, with imports from euro area countries rising by 13.5%.

Trade with Non-EU Countries

• Exports of goods to outside of the EU increased by 13.1%, while imports jumped by 25.9%.

With other Countries

• Exports to the UK slid by 15.1%, with imports from the UK down 7.9%.
• To China, exports rose by 4.4%, however, with exports to the U.S jumping by 22.4%.

Market Impact

Ahead of the trade data, the EUR had fallen to a pre-stat and current day low $1.15413 before finding support.

In response to today’s stats, the EUR fell to a post-stat low $1.15419 before rising to a post-stat and current day high $1.15613.

At the time of writing, the EUR was up by 0.09% to $1.15607.

Next Up

On the monetary policy front, ECB President Lagarde is scheduled to speak later today. The big question will be whether the ECB President concedes on inflation…

Key, however, will be nonfarm payrolls from the U.S… The markets are looking for a sharp pickup in hiring to accompany the upward trend in cost pressures to push the FED into action…