Euro Heads Back Towards Record Highs

The Euro came within a 30 pips of its all-time highs today on the back broad dollar weakness. Both the German and French trade balance was weaker than expected in the month of June. The French trade deficit remained unchanged at -3 billion while the German trade deficit shrunk from 17.3 billion to 16.5 billion.

The current account balance for the same month however was much stronger than expected, at 16.6 billion versus 8.9 billion the prior month thanks to an increase in both exports and imports. Meanwhile the economic conditions in Switzerland continue to be good with the unemployment rate remaining at an extremely low 2.7 percent. This has helped the franc outperform the Japanese Yen.