Exports from Germany fell more than 1pc in October from the same month last year, as the appreciation of the euro made German goods more expensive outside the eurozone. German exports fell 1.2pc to E58.2bn in October, while imports rose 0.1pc to E47.4bn, the Federal Statistical Office said. On a month-on-month basis, exports were unchanged. The trade surplus fell 24.5pc to E10.8bn in October from September.
A decline in exports will hamper the German recovery, which is being led by increased demand for goods from abroad. Recent figures from EU statistics office Eurostat show that the eurozone expanded by 0.4pc in the three months to September, led by a 2.2pc surge in export growth as demand in the faster growing US and UK economies improved. The stronger euro is making eurozone goods less competitive abroad; the single currency hit an all time high above USD1.2250 last night, taking its gains in the year to date to 18pc. Separately, the Federal Statistical Office said wholesale prices fell 0.1pc in November from October and were up 1.5pc from a year earlier.//www.fxcentre.com