Euro shrugs off weak German data and pares losses amid an improved risk mood 

Source Fxstreet
  • EUR/USD approaches 1.1200 after bouncing from lows near 1.1130 on Friday.
  • The ongoing diplomatic efforts to end the US-Iran war and lower Oil prices have contributed to easing AI concerns at the week's opening.
  • Strong US data and Fed tightening hopes are likely to limit Dollar losses.


The Euro (EUR) appreciates about 0.4% against the US Dollar (USD) on a calm week opening, and a mild appetite for risk, which has offset the downbeat German Trade Balance data released earlier on Monday. The EUR/USD pair is trading at the 1.1190 area at the time of writing, up from Friday’s high at 1.1130.

A mild optimism prevails at the week's opening, with the main European equity indexes showing moderate advances, as AI fears have eased, at least for now, and diplomatic efforts to end the Middle East conflict continue. Brent Oil prices consolidate below the key $100 level, which provides important relief to the Eurozone’s Oil-importing economies.

The positive market sentiment has offset the downbeat German Trade Balance figures seen earlier on Monday. Data released by Destatis revealed that the trade surplus narrowed to EUR 15.6 billion in September, from EUR 17.8 billion in August, against expectations of a EUR 19.2 billion surplus, as imports increased well above exports.

The safe-haven USD dives despite strong NFP data and Fed tightening hopes

In the US, Nonfarm Payrolls data released on Friday beat expectations, with net jobs increasing by 165K, overshooting the market consensus of a 65K growth, and the Unemployment rate declining to 4.1%.

These figures have strengthened market expectations that the Federal Reserve (Fed) will hike interest rates again at its December meeting, a view that was backed by New York Fed President John Williams, St. Louis Fed President Alberto Musalem, and San Francisco Fed President Mary Daly later in the day.

Analysts at Commerzbank Research observe that “of the 18 Fed officials who submitted projections for the appropriate path of interest rates in September, 16 anticipated at least one more rate hike this year (...) “the data released since then are unlikely to have changed that assessment materially,” says the bank in a note.

Economic Indicator

Trade Balance s.a.

The Trade Balance released by the Statistisches Bundesamt Deutschland is a balance between exports and imports of total goods and services. A positive value shows a trade surplus, while a negative value shows a trade deficit. It is an event that generates some volatility for the EUR. If a steady demand in exchange for German exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the EUR.
Review Alex Nekritin's Article - Trading the Euro with Germany Trade Balance

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Last release: Mon Nov 09, 2026 07:00

Frequency: Monthly

Actual: €15.6B

Consensus: €19.2B

Previous: €19.5B

Source: Federal Statistics Office of Germany

Economic Indicator

Imports (MoM)

Imports of goods and services, released by Statistiches Bundesamt Deutschland, consist of transactions in goods and services (purchases, barters, gifts or grants) from non-residents to residents.

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Last release: Mon Nov 09, 2026 07:00

Frequency: Monthly

Actual: 4.2%

Consensus: 0.5%

Previous: 0.9%

Source: Federal Statistics Office of Germany


Fed hike expectations underpinned by solid us labor market

Analysts at Commerzbank Research argue that recent data leave the Federal Reserve with room to tighten policy further, noting that “on balance, the U.S. labor market remains solid and poses no obstacle to further interest rate hikes.” The bank points out that “of the 18 Fed officials who submitted projections for the appropriate path of interest rates in September, 16 anticipated at least one more rate hike this year,” and judges that “the data released since then are unlikely to have changed that assessment materially.”


Disclaimer: For information purposes only. Past performance is not indicative of future results.
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