German trade surplus narrows in June as rise in imports outstripped a modest gain in exports

Data from the German Federal Statistics Office showed on Tuesday that nation's seasonally adjusted trade surplus narrowed to €21.7 billion in June from a revised €22.1 billion in May. German exports returned to growth in June after an unexpected m/m decline in May providing the necessary boost.

Seasonally adjusted exports were up 0.3 percent on the month, the data from the Federal Statistics Office showed. This came after a 1.8 percent fall in May, which was the steepest drop in nine months. Imports rose 1 percent on the month, more than double the median forecast of economists polled by Reuters.

German second quarter GDP figures are scheduled for release on August 12 and a Reuters poll forecasts a growth of just 0.3 percent. German economy expanded by 0.7 percent, more than doubling its growth rate as higher state and household spending, as well as rising investment on construction and capital goods, offset a drag from foreign trade.

The euro showed muted reaction to the data.  EUR/USD has been trading a narrow range, unable to poke through $1.11 and is finding bids a bit below the 20-day moving average ($1.1080).