Trade deficits in Europe and USA dictate forex movements

Trade deficits in Europe and USA dictate forex movements

New French figures showed that industrial production was down in that country by 0.3 percent in April, the third monthly decline in a row and a larger drop than had been expected.

In addition, the French trade deficit was up to €3.22 billion in April on record imports from a level of €2.34 billion in March.

While the US trade deficit also grew in April, to $57 billion from $53.6 billion in March, but the growth was less than had been expected.

These figures are part of what sent the euro down for the week to a series of new lows, while the dollar was up against the yen and the Canadian dollar but down in relation to the Australian and New Zealand dollars.

This data produced hope that the trade deficit might be in the process of stabilizing.

The US dollar rose 0.7 percent for the week against the yen, to ¥108.40, and it was up 0.2 percent to C$1.2492 in relation to the Canadian dollar.

But the Australian dollar gained 0.9 percent to $0.7624 for the week in relation to the US dollar, while the New Zealand was up 1.1 percent on the US dollar to $0.7063.

The euro was down 0.8 percent to $1.2130 against the US dollar this week, a nine-month low.

It was also down 0.1 percent to a one year low of ¥131.51 against the yen.

The euro hit a ten-month low against sterling as it was down 0.8 percent for the week to £0.6690, and a two-year low of NKr7.8358 in relation to the Norwegian krone, a decline of 0.8 percent for the week.

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