German export levels rose for the third consecutive month in July, gaining 2.3% while factory orders rose by 3.5%. Given the increase, markets were expecting a rise in industrial production yet this morning markets surprised to the downside with figures declining -0.9% on the month. This takes the annual rate of decline to -19%.

Economists have warned that the rolling back of stimulus packages may make for an uneven economic recovery. Having ended recession in the second quarter, industrial production for the third quarter is expected to be positive and August figures may prove an anomaly. The German trade balance also came in at EUR13.9 billion this morning, better than expected by markets largely due to the rising export levels.

This news has helped boost the euro exchange rate this morning, with the single currency currently trading at USD1.4478 and GBP0.8748.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.