The euro strengthened against other major currencies in the pre-European session on Tuesday, after data showed that Germany’s foreign trade surplus increased in August, as exports grew faster than imports.
Data from Destatis showed that Germany’s exports climbed a calendar and seasonally adjusted 3.1 percent month-over-month in August, well above the 0.2 percent rise in July.
Imports rose at a slower pace of 1.2 percent after a 2.4 percent gain in the preceding month.
As a result, the trade surplus increased to EUR 21.6 billion in August from EUR 19.3 billion in the prior month. Economists had expected the surplus to rise to EUR 19.5 billion.
On a yearly basis, export growth eased to 7.2 percent from 8.0 percent. Similarly, imports grew 8.5 percent after expanding 9.6 percent.
The unadjusted trade surplus rose to EUR 20.0 billion from EUR 19.6 billion.
In the pre-European session, the euro rose to more than a 2-week high of 1.1525 against the Swiss franc, an 8-day high of 1.1789 against the U.S. dollar and a 4-day high of 132.71 against the yen, from yesterday’s closing quotes of 1.1502, 1.1739 and 132.27, respectively. If the euro extends its uptrend, it is likely to find resistance around 1.17 against the franc, 1.19 against the greenback and 135.00 against the yen.
Against the pound, the euro advanced to 0.8949 from yesterday’s closing value of 0.8933. The euro is likely to find resistance around the 0.91 region.
Against the New Zealand and the Canadian dollars, the euro climbed to nearly a 5-week high of 1.6671 and nearly a 2-week high of 1.4751 from yesterday’s closing quotes of 1.6616 and 1.4731, respectively. On the upside, 1.67 against the kiwi and 1.49 against the loonie are seen as the next resistance level for the euro.
Looking ahead, U.K. industrial production, construction output and trade balance, for August, are due to be released later in the day.
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