Forex News – Euro lower after German exports fall in April

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Germany’s trade balance numbers for the month of April were released today showing a drop in exports by 1.7 percent, leading to a lower trade balance of 14.4 billion euros. This was a further decline from the 17.4 billion balance in March.

The fall in exports  was much more than the expected 0.7 percent but the overall trade balance was higher than expected as imports unexpectedly fell by 4.8 percent during the month.

According to the Federal Statistics Office, the total number of exports in April came to 87.1 billion euros, while imports equaled 72.7 billion. 40.6 billion of April’s exports were within the EU, which showed a 1.1 percent drop of import and exports with Germany’s EU partners when compared to April 2011.

However, exports to countries outside the EU increased 10.3 percent compared to last year.

The smaller trade balance indicates Germany is not immune to the European debt crisis and has begun to feel the effects of its neighbors’ contracting economies.

EURUSD continued earlier session losses after the data showed the weak German exports. The pair is dropping for a second day, as gains from earlier this week are reversed.