Germany’s trade surplus surged to a three-month high, boosting the euro as Canadian dollar weakens on falling oil prices.
The EUR/CAD pair climbed to 1.6210 in European trading, recovering from two days of losses. Germany’s trade surplus expanded to €19.1 billion in May, exceeding forecasts of €14.8 billion and marking the largest surplus since February. Exports rose 0.9% month-on-month, defying expectations of a 0.3% decline, while imports fell 2.5% to a three-month low.
The previous month’s surplus was revised upward to €14.7 billion. Analysts had anticipated a smaller surplus, with imports expected to grow 0.1%. The euro’s strength was further supported by a decline in the commodity-linked Canadian dollar, as West Texas Intermediate crude slipped below $73.00 per barrel.
Geopolitical tensions in the Middle East, including U.S.-Iran military strikes, could reverse oil price trends, adding volatility to the CAD.