The euro dipped slightly this morning in the wake of new data from Germany.

Against the pound the euro stood at 1.4578 while against the dollar the euro was at 1.1932.

Germany's trade surplus saw significant growth in 2005 despite a poor December for foreign sales.

According to the Federal Statistics Office, the trade surplus in Europe's largest economy for last year was £110 billion, up from £107 billion a year earlier.

Total exports rose to £540 billion in 2005, but some experts are predicting that a slow down should be expected following a disappointing December that saw imports rise by 5.8 percent with an increase in exports of just 0.8 per cent.

"We see risks of a decline in fourth quarter economic growth and are expecting a flat reading," Alexander Koch, an analyst at HVB, told the BBC.

"On the strength of the latest data, it's obvious we won't see white-hot growth this year," he added.

The euro's 13 per cent drop against the dollar last year helped the 2005 export figures by making German products more attractive to foreign customers.