Eurozone account surplus expanded on yoy

The Eurozone account surplus expanded above forecasts in April on seasonally adjusted basis, showed the latest data of European Central Bank (ECB). The monthly report of the institution shows that the current account balance of the 18-nation currency bloc was a surplus of 21.5 billion EUR in the fourth month of the year. A month earlier, in March, revised surplus reached 19.6 billion EUR. The market consensus was bet on the result of 19.4 billion EUR in April.

According rise has come because surpluses in goods (16.9 billion EUR) and services (10 billion) EUR, which were partially offset by the deficit in current transfers (10.6 billion EUR). The meter is crucial for long-term confidence of investors and trading partners. Positive current account balance shows that the region is a net creditor to the rest of the world, while a negative current account balance indicates that it is a net borrower.

Seasonally adjusted basis Meter reported a decline to 18.7 billion EUR from the revised 21.6 billion EUR reported in the previous month. The market consensus was set at a level of 15 billion EUR. The surplus in the current account directly correlated with the demand for the currency. The higher surplus indicates that foreigners are buying more local currency to perform transactions in the region.

From Credit Suisse highlighted, however, that although the unit reported a growing current account surplus until 2012, the EUR has not appreciated significantly.