Euro Zone Trade Balance- Economic Data Preview

The[B] Euro Zone Trade Balance[/B] is expected to show a seasonally adjusted -1.5 billion euro deficit in April following a -2.1 euro shortfall in the previous month. The reading falls firmly within the downward trajectory that has led trading terms lower since March 2007. A survey of economists conducted by Bloomberg suggests a deepening external shortfall will slice -1.5% off GDP growth in 2009, the most in 9 years, and another -1.2% in 2010. A growing trade gap implies an outflow of Euros from the regional bloc to their trading partners, suggesting downward pressure on the single currency in the long-term outlook.