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 -4.7B in February, better than expected. In February 2009 compared with January, seasonally adjusted exports rose by 0.5%, while import declined by 0.8%.
“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. February was the eight consecutive month in which the Euro-area ran a trade deficit, seasonally adjusted data,” TheLFB-Forex.com Trade Team said.
Forex Technical Reaction: The euro plunged 100 pips during the overnight session, as the market remains driven by risk-aversion. Additionally, the euro broke under the 1.3125 support area, which held the pair over the last two weeks.