Germany, the strongest economy in the eurozone, revealed a 3.9% increase in wages for the first quarter of 2013 – the largest jump in wages in four years. This provided a boost to the euro as it is a sign that the German economy is strong and hopefully German workers will spend more money within the eurozone.
The news from the eurozone wasn’t all positive, however; the latest trade balance figures show us that the budget surplus declined, as the region announced a trade surplus of €14.9 billion in April. This compares with €22.5 billion in March; economists were expecting a surplus of €21.2 billion. This drop in trade surplus is down to a drop in exports. Traders took some comfort that the region is still posting a surplus.
Jens Weidmann of the Bundesbank is due to speak at 4.10pm (London time). Mr Weidmann has historically been against the European Central Bank supporting the eurozone bond markets, and if he reiterates that belief today we might see dealers sell the euro and buy the dollar.