Euro Zone Current Account Surplus Narrows

Euro Zone Current Account Balance (euros) (JUL)

Actual: 1.7B
Expected: 3.5B
Previous: 7.3B (R+)
An expensive euro was clearly taking its toll on international trade trends. For the month of July, total goods, services, income and transfer net flows measured up to a 3.3 billion euro surplus. While this positive headline number may be taken as strong on its own (especially when compared to the recent record deficit recorded back in May), the breakdown suggests differently. In May a sizable income deficit overwhelmed struggling goods and services balances. As time has progressed however, the good balance has hit a new low, the services surplus was the second smallest since January and income flows actually grew. Given enough time in the vacinity of its new record high, income will start to taper and goods and services balances will continue to fall towards deficits.
In the minutes after the release, EURUSD moved little more than 10 points as traders were preoccupied by teh recent rally to new all time highs at 1.4120.