Euro zone May trade balance has come in at +1.9 bln euros, worse than the median forecast of +2.7 bln. Exports were down 24% year on year, imports down 27% year on year. The market has taken little or no notice of the data, EUR/USD steady at 1.4105.
Not surprisingly there is some hesitation of extending the rally given China’s appearance as a seller up at 1.4110/20 earlier. Their influence on price action is quite scary. I know one of our readers a few days ago said they were doing very nicely just following China whenever they were mentioned.
It was reminding me earlier of an old advert for Hofmeister beer which had a catchphrase “Follow the bear.” That’s kinda more Russia though. Maybe it should be “Follow the Giant Panda” or even “Follow the Dragon.”
