Euro Weakens as Germany Expands Trade Surplus to €16.2B - 8.8.2012

Germany expanded its Trade Surplus unexpectedly to 16.2 billion in June from 15.0 billion in May on seasonally adjusted terms according to the German Federal Statistical Office. However, German Exports reduced by 1.5 per cent in June down from a revised 4.2 per cent increase in May and imports reduced by 3.0 per cent compared to a revised 6.2 per cent rise in May, due to greater fall of imports Trading Surplus expanded in June. At the same time the German Current Account Balance of Payments showed a surplus of 16.5 billion euros in June’12 up from 11.0 billion euros in June’11. The Euro weakened as imports and exports fell significantly in June, mainly imports from and exports to Euro area countries for the Europe’s biggest Economy, indicating that austerity measures for indebted countries have externalities to healthy economies. The EURUSD penetrated the support at 1.2374 and fell to 1.2359 finding some support there after the release of the trade data.