Euro above 1.1200 against US dollar following robust performance on external front
Euro stayed supported against the US dollar today following a robust performance on the external front. Latest data showed that Euro area trade surplus grew strongly in March as exports to the US increased sharply. The trade balance showed a surplus of EUR 36.8 billion compared to a EUR 22.8 billion surplus in the same period last year, Eurostat reported Friday.
Exports of goods recorded a double-digit annual growth of 13.6%. At the same time, imports climbed 8.8%. Data showed that exports to the United States surged 59.5% in March, while imports from the country grew only 9.4%. Consequently, the trade surplus with the US increased sharply to EUR 40.7 billion from EUR 16.7 billion last year. The euro area trade surplus rose to a seasonally adjusted EUR 27.9 billion, which was the highest level since January 2002. The surplus was EUR 22.7 billion in February. Exports increased 2.9% from February and imports grew 1% in March.
Meanwhile, the US economic cues were lax. Consumer sentiment in the U.S. has unexpectedly continued to deteriorate in the month of May, according to preliminary data released by the University of Michigan on Friday. The University of Michigan said its consumer sentiment index dipped to 50.8 in May after slumping to 52.2 in April.
EURO/USD pair moved up a bit from lows around 1.1150 on Friday and is back above 1.1200 today. It currently trades up 0.39% at 1.1216. On the NSE, EUR/INR futures are trading at 95.90, down 0.08% on the day. Overall movement is choppy as markets are eying gains in the single currency in global markets.
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