Euro Zone Current Account Deficit Narrows Less Than-expected

Forexpros
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Forexpros – The euro zone’s current account narrowed less-than-expected in November, official data showed on Thursday.

In a report, the European Central Bank said that the euro zone current account recorded a seasonally adjusted deficit of EUR1.8 billion in November, narrowing from a deficit of EUR6.6 billion in October, whose figure was revised from a EUR7.5 billion deficit.

Economists had expected the region’s current account to swing to a surplus of EUR0.5 billion in November.

The report said that the 12-month cumulated seasonally adjusted current account recorded a deficit of EUR44.9 billion in November, approximately 0.5% of euro area gross domestic product, compared with a deficit of EUR34.6 billion a year earlier.

This increase resulted mainly from a shift in the balance for goods from a EUR15.2 billion surplus to a EUR6.2 billion deficit, which was partly offset by increases in the surpluses for services and for income.

Following the release of the data, the euro held on to modest gains against the U.S. dollar, with EUR/USD easing up 0.05% to trade at 1.2872.

Meanwhile, European stock markets were higher after the open. The EURO STOXX 50 rose 0.2%, France’s CAC 40 climbed 0.5%, Germany’s DAX eased up 0.1%, while the FTSE 100 added 0.05%.

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