Euro area goods trade figures extended the run of softer than anticipated releases recorded in recent months. The trade surplus rebounded after a decline in the prior month, rising EUR 0.8 billion to EUR 21 billion in February and leaving the three-month average unchanged at the highest level since the third quarter of 2016.
But both imports and exports fell sharply. Indeed, imports dropped 3.1 percent in nominal terms on a sequential basis, while exports dropped 2.3 percent, the softest readings in eight and third months respectively. Looking at the export breakdown by nation, the performance was mixed. Exports to the U.S., China, Turkey and Russia all dropped, partially countered by a surge in exports to Japan.
In all, despite the softness in February, from a quarterly perspective, the figures released today continue to be in lie with a small rise in both imports and exports in the first quarter, noted Daiwa Capital Markets Research in a report. But if euro area economic momentum does not rebound in March, it is likely that trade flows declined last quarter after a strong growth in 2017 that accounted for roughly half of full-year GDP growth, added Daiwa Capital Market Research.
At 21:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -40.2379, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 19.4947. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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