EUR/USD edges higher as German trade surplus beats expectations

EUR/USD gained 0.1% to 1.0565 following Germany's stronger-than-expected October trade data, with the trade surplus expanding to €16.9 billion versus €15.6 billion forecast. The improvement was driven by resilient exports which rose 0.1% month-over-month against expectations of a 0.5% decline, while imports contracted 1.2%, more than the anticipated 0.5% drop. This marks a notable shift from September's robust 1.4% export growth and 3.1% import surge. Despite the positive surprise, the data is unlikely to alter the European Central Bank's monetary policy trajectory, with markets still pricing in potential rate cuts amid broader eurozone economic weakness. Technical resistance for EUR/USD remains at 1.0600, while support holds at 1.0500. The modest reaction suggests traders are awaiting more significant catalysts, including upcoming ECB policy meetings and US economic releases that could drive more substantial moves in the pair.