Germany’s trade surplus expanded to a three-month high, exceeding forecasts and lifting the euro against the yen.
The EUR/JPY pair climbed to around 185.70 in early European trading on Thursday, extending gains after Germany’s trade surplus widened to €19.1 billion in May. The surplus, the largest since February, surpassed market expectations of €14.8 billion and followed an upwardly revised €14.7 billion in April.
Exports surged 0.9% month-on-month, reaching a three-and-a-half-year high and defying forecasts of a 0.3% decline. Imports, however, fell 2.5% to a three-month low, missing estimates for a 0.1% increase. The data underscored Germany’s export-driven resilience amid broader economic uncertainty.
The yen’s weakness may face limits as speculation grows over potential Japanese intervention to support the currency. Analysts warn the yen’s decline is overdone relative to Japan’s economic fundamentals.