EUR/USD rises as Eurozone trade surplus beats expectations at €16.2B

EUR/USD gained 0.15% to 1.0842 following stronger-than-expected Eurozone trade balance data for May. The trade surplus expanded to €16.2 billion, significantly exceeding the forecast of €14.0 billion and the upwardly revised prior reading of €15.1 billion. This improvement reflects robust export performance across the monetary union, particularly in manufacturing goods, providing support for the euro amid concerns about regional economic growth. The positive data reinforces the European Central Bank's cautious stance on monetary policy, as healthy trade flows help offset domestic demand weakness. Technical indicators show EUR/USD testing resistance at 1.0850, with the 50-day moving average at 1.0835 providing immediate support. A sustained break above 1.0850 could open the path toward 1.0880, while failure to hold current levels may see a retest of 1.0820. Traders await Thursday's ECB meeting minutes for further policy direction clues.