The USD has been bolstered overnight in Asia by the release of much worse than expected Chinese trade data for February, which served to ratchet up risk aversion. The trade suplus shrank to $4.84 bln (compared to a median forecast calling for a surplus of $27.3 bln), with exports sliding a hefty 25.7% on a year ago. EUR/USD is presently down at 1.2640, having closed out Tuesday in Europe up around 1.2750.
Things look pretty light on the economic data front today.
09: 30 GMT: UK visible trade (Jan) expected -£7.5 bln. Total trade expected -£3.7 bln.
11:00 GMT: German factory orders (Jan) expected -2.0% m/m, -28.3% y/y.
We’ve earlier had the release of German PPI (Jan) which came in at -1.2% m/m, +2.0% y/y, compared to median forecasts of -0.1% m/m and +3.4% y/y. Decembers’ data was revised to -0.8% m/m, +4.0% y/y from inital -1.0% m/m, +4.3% y/y) The weaker than expected data is further evidence of easing inflation pressures, and will bolster hopes of an early ECB rate cut.
