Germany's economic indicators continue to signal recession。In December, Germany's trade surplus widened from 20.7 billion euros to 22.2 billion euros.。Economists forecast trade surplus of 18.8 billion euros。

Latest data expose weak German demand

According to the German Federal Statistical Office (Destatis):

• In December, exports fell 4.6%。
• Imports fell 6.7%。
• Exports fell by 1% in 2023 compared to 2022.4%, while imports plunged 9.7%。
• Exports to EU countries fell by 5.5%, imports fell 7.4%。

Trade with non-EU countries:

• Exports of goods to non-EU countries down 3.5%, imports fell by 5.9%。
• Exports of goods to US down 5.5%, exports to China fell 7.9%。
• Imports of goods from China plunge by 8.5%, while imports from the United States increased by 1.9%。

Germany's latest data gives ECB more reason to consider rate cuts in April。Weak macroeconomic environment in Germany could affect euro zone economy as a whole。

Reaction of the euro against the dollar

Euro rises to 1 against dollar ahead of trade data.07865 dollars high, then fell to 1.Low of $07672。

However, in reaction to the trade data, the euro rose to 1 against the dollar..$07786 high, then fell to 1.Low of $07747。

On Monday (February 5), the euro fell 0 against the dollar..10% to 1.07760 USD。

Eurozone and US Services PMI

Analysts say investors will be interested in Italy's services PMI and the final services PMI for France, Germany and the euro zone.。Upgrades to preliminary eurozone data could ease fears of eurozone recession。According to the preliminary survey, the euro zone HCOB services PMI in January from 48.8 down to 48.4。

However, investors must also take into account eurozone producer price data.。If producer prices fall more sharply than expected, it could increase investor bets on the ECB's April rate cut。

Economists believe that producer prices are a leading indicator of consumer price inflation。In an environment of weak demand, producers cut prices in order to get new business。The downward trend in producer prices dampens demand-driven inflationary pressures。

Economists forecast that producer prices fell by 0 in December last year..8%。Producer prices fell 0 month-on-month in November.3%。

Later in the day, the U.S. economic calendar needs to be considered。ISM non-manufacturing PMI and Fed comments may influence investors' bets on March Fed rate cut。Economists predict that the important ISM non-manufacturing PMI will increase from 50.6 to 52.0。Federal Reserve member Rafael Bostic will also be watched。