Euro Steady as Current Account Improves

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Eurozone current account printed much better than forecast, rising to 12.7 Billion surplus versus 7.8 Billion eyed helping to support the euro in morning European trade. This was the highest reading in well over 5 years and the fourth consecutive monthly surplus this year.

Despite the sovereign debt problems and the serious contractions affecting its periphery regions, the EZ current account position has improved markedly this year. After posting several year of persistent deficits, the EZ is on track to record a surplus in its current account this year led largely by Germany’s dominant position in trade.

With little other data on the docket, the EUR/USD has remained quiet during the final day of the week trade but has performed very strongly on the crosses rising sharply against both the Aussie and the pound. With little US data on the docket as well, trading may remain slow into the week-end but if risk appetite continues into North American session the pair may make another run at the 1.2400 level.

Boris Schlossberg
Managing Director

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