EUR/USD

European stocks edged lower ahead of the ECB monetary policy statement later in the day. The DAX index slipped more than 1.02% after the release of weak German Trade Balance for May. UK’s FTSE 100 index declined 1.21% ahead of the country’s GDP data on Friday. French CAC 40 index as well as Euro STOXX 50 slipped more than 1.25%.

German Economic Stance

Germany’s DAX index slipped after uneven exports and imports data for May. In May 2021, compared to April the same year, calendar and seasonally adjusted exports in Germany rose 0.3%.

 According to the Federal Statistical Office, calendar and seasonally adjusted exports were 0.3% lower than in February 2020, before the pandemic.

In May 2021, Germany exported goods worth €109.4 billion. Compared to May 2020, exports increased 36.4% in May 2021. This is due to the low level of foreign trade in May last year.

In May this year, goods to the value of €60.7 billion were exported to the member states of the European Union (EU). Exports to the EU countries were up 43.3% YoY. Goods worth €48.8 billion were exported to non-EU countries while those exported to the UK were worth €5 billion.

German imports for May surpassed the estimate forecast for a 0.4% increase. calendar and seasonally adjusted German imports inched 3.4% higher. The imports were also 9.4% higher than February 2020, before the lockdown restrictions.

Imported goods in May 2021 were worth €97.1 billion. The imports were 32.6% more than May 2020 due to the low levels of foreign trade in that month.

Germany imported goods worth €52.9 billion from EU member states in May 2021. This was 38.1% higher compared to May last year. Goods to the value of €44.3 billion were imported from non-EU countries while goods worth €2.7 billion were imported from the UK.

German Trade Balance for May came in at of €12.6 billion. This was weaker than the estimate forecast of €15.4 billion.

All eyes have shifted to the European Central Bank (ECB) monetary policy statement later in the day. investors are hoping to get clues on whether the ECB might consider adjusting its policies.

DAX Index Movers

Delivery Hero, Deutsche Wohnen, and Merck were among the best performers in the DAX index. Delivery Hero’s Foodpanda has grown into the biggest food delivery app in Asia excluding China. The online food -ordering company gained 1.25% in its stock earnings.

Infineon led the laggards in the index. The company announced its plans to commercialize Amber’s Tech for digital control of electricity.  The semiconductor manufacturing company dipped by more than 2.12%.

 Other laggards include Daimler and BASF. Each lost 2.07% and 1.88% respectively.

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