German Trade Balance Better Than Expected; Export Numbers Break Negative Trend

By David Schutz,

THETAKEAWAY : German tradenumbers better than expected -> Risk sentiment bolstered after positive US jobdata -> Euro gaining steam as players move out of safedollar

German trade balance for September came intoday at EUR11.8B, higher than the expected EUR9.0B and aboveAugust’s figure which was revised to EUR10.5B. Exports, whichwere expected to be weak following a bleak month for German industry, grew 3.5% versus theprojected figure of 1.1%, while imports dropped to flat, slightlylower than the expected 0.6%.

European economic data has been coming outbetter than expected so far this week, with French industrialproduction showing a growth of 0.5% as opposed to the expected dropof - 0.7%. The Euro closed strong last Friday givenheightened risk sentiment following better-than-expected US jobdata, and equities and commodities all entered European tradeslightly higher today.

Also assisting risk sentiment this weekend was news that Germany’s Merkel and France’s Sarkozy have agreed to a comprehensive European bailout plan – previous disagreements had centered on the proportion of losses to be born by private banks versus the public sector.
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Original Article: http://www.dailyfx.com/forex/market_alert/2011/10/10/Market_alert.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

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