Taking a Fundamental Approach to Forex Trading

Trading the Euro with Germany Trade Balance

Germany trade balance is an economic figure released monthly in Wiesbaden by the German Federal Statistics Office. Calculating in billions of Euros, this piece of date represents the difference between the net value of the exports and imports in Germany for a given month. When the value of exports exceeds the value of imports, a trade surplus is created; and when the value of imports exceeds the value of exports, a trade deficit is created.

Germany Main Exports Commodities	Germany Main Exports Partners
Machinery	France 9.7%
Vehicles	US 8.6%
Chemicals	UK 7.3 %
Food stuff	Italy 6.7%
Textiles	Netherlands 6.2%

Germany Main Exports Commodities	Germany Main Exports Partners
Machinery	Netherlands 11.7%
Vehicles	France 8.7%
Chemicals	Belgium 7.6%
Food stuff	UK 5.9%
Textiles	China 5.9%

Impact on the Euro
As Europe's largest economy, Germany trade balance plays a significant role in speculating the potential movement of the Euro. But with the export oriented nature of the German economy, a trade surplus becomes a normal scenario. For that, currency traders shouldn't focus on the absolute value of the economic release. But rather they should analyze the monthly and annual percent of change. A positive change would boost up the Euro, while a negative change would depreciate the European currency against its counterparts.