The downside pressures on the euro area continue to mount as the strong euro and the slowing global demand and domestic recovery pressures trade lower, stripping a key support for the area amid the rising fiscal challenges.

The trade deficit in April widened more than expected to 2.9 billion euros in seasonally adjusted terms from a wider than expected deficit reported for March at 2.2 billion from the originally reported 0.9 billion. The shortfall was more than the expected at 2.7 billion euros.

In unadjusted trade deficit was 4.1 billion euros from a downside revised surplus of 1.6 billion from 2.8 billion and more than the expected shortfall of 1.9 billion.