Euro area current account surplus eases in February

Current account surplus in the euro area eased in the month of February. Surplus narrowed by EUR 4 billion to EUR 25.1 billion, showed ECB figures today. But that level is still quite high by historical standards, matching the average in the second half of last year, and on a 12-month basis the surplus reached a new record high.

Delving into details, on the balance of payment basis, the goods trade surplus narrowed for a second straight month from its series high in December, while the services surplus was slightly changed. And a lower primary income balance was partially countered by a rebound in the secondary income balance.

Looking at the first quarter as a whole, in spite of the recent softening in economic momentum, the euro area current account surplus is expected to match the 3.7 percent of GDP reading of the fourth quarter, noted Daiwa Capital Market Research in a report. In the meantime, the latest figures for the financial account implied that foreign resident appetite for euro area equities diminished, as volatility in global markets rose sharply and valuations dropped. Foreigners reduced their euro area equity holdings for the first time in 16 months, while their holdings of euro area debt securities continued to fall widely in line with trend in the past two years, stated Daiwa Capital Markets Research.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 33.9726, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 42.752. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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