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Euro-area Trade Deficit Shrinks To 2.1B In March

Published 12/31/2000, 07:00 PM
Updated 05/18/2009, 05:16 AM

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Release Explanation: Measures the country’s exports minus its imports and its the largest component of a country’s balance of payments. “An increase or decrease in the Trade Balance will help determine the future economic outlook and growth numbers in a region. It can influence all aspects of an economy as it is the way that region balances its books.” TheLFB-Forex.com Trade Team notes.

TheLFB-Forex.com Trade Desk Thoughts: The Euro-area adjusted trade balance was released at -2.1B in March, better than expected. In March 2009 compared with February 2009, seasonally adjusted exports rose by 1.4% and imports by 0.6%.

“An analysis of the trade balance over the last year shows that imports rose at a faster pace than exports mainly due to the energy component, which is also the biggest module of the trade balance. March was the ninth consecutive month in which the Euro-area ran a trade deficit, even though lately, exports seem to have recovered the lost ground TheLFB-Forex.com Trade Team said.

Forex Technical Reaction:
The euro moved less than 30 pips during the overnight session, even though the currency market saw strong momentum. The release failed to move the euro.

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