German Trade Surplus Narrows in October Providing Little EUR Comfort

It was a quiet day on the Eurozone economic calendar. German trade data was in focus going into the European open.

In October, Germany’s trade surplus narrowed from a revised €12.9bn to €12.5bn. Economists had forecast a widening to €13.6bn.

According to Destatis,

• Month-on-month, exports increased by 4.1% and by 8.1% year-on-year.
• Imports rose by 5.0% month-on-month and by 17.3% year-on-year.
• In Oct-2020, the trade surplus had stood at €19.7bn.

Trade with EU countries

• German exports to EU member states increased by 11.6% year-on-year, while imports rose by 14.6%.
• To the euro area, exports were up 12.8% when compared with Oct-2020. Imports from euro area countries were up 18.8%.
• Exports to EU countries not belonging to the euro area increased by 9.0%, while imports rose by a more modest 6.0%.

Trade with Non-EU Countries

• Exports to third countries increased by 4.1% compared with Oct-2020.
• Imports from third countries was up by 20.4%.

Other Notable Countries

• Exports to the UK were down 11.5%, with imports from the UK falling by 2.9%.
• To China, exports rose by 8.5% and by 11.4% to the U.S.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat and high $1.13464 before easing back.

In response today’s stats, the EUR rose to a post-stat high $1.1331 before falling to a post-stat and current day low $1.1317.

At the time of writing, the EUR was down by 0.18% to $1.13224.

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