Release Explanation: This is a nation’s total exports of Goods, Services, and Transfers, deducted from its total imports of them. (Not to be confused with the Trade Balance that looks solely at imported and exported Goods). Current Account Balance calculations exclude transactions in Financial assets and liabilities. The Current account is a comprehensive accounting review of a nation’s Global trade that includes the Trade Balance in its figures.
Trade Desk Thoughts: The Euro-area current account was released at -12.7B, much worse than analysts’ expectations. The previously released number, for the month of December, was revised lower, to -7.6B. The report shows that the Euro-area trade account still recorded a deficit in December, as exports dropped sharply. The service trade surplus also narrowed in December, on lower demand
Forex Technical Reaction: The euro was unmoved by the release. During the European session, the euro tried to find a bottom after declining approximately 100 pips from the high of the session.