Eurozone June trade surplus of EUR 8.6 billion beats forecasts, lifting the euro as US inflation data weighs on the dollar.
The euro extended gains against the dollar, trading above 1.1550 after Eurozone GDP met expectations and June’s trade balance surpassed forecasts. The region posted a EUR 8.6 billion surplus, reversing May’s EUR 9 billion deficit and defying projections of a EUR 2.2 billion shortfall.
Eurostat confirmed second-quarter GDP growth at 0.4% quarter-on-quarter, matching estimates, while year-on-year growth accelerated to 1%. Employment rose 0.1% sequentially and 0.5% annually, aligning with prior estimates.
The dollar weakened broadly ahead of US retail sales data, with markets pricing in reduced odds of near-term Federal Reserve rate hikes after softer inflation readings.