German Finance Ministry: German exports are likely to remain subdued - Reuters

• Exports to be subdued in coming months given global risks and slowing world trade.
• Strong labour market to continue supporting domestic economy.

Reuters reports that according to the German Finance Ministry, German exports are likely to remain subdued in the coming months as slowing world trade and global risks continue to hurt manufacturers, the Finance Ministry said in its monthly report on Friday.

The German economy has been going through a soft patch. Its export-oriented manufacturers are struggling with trade disputes, its car industry is adapting to a costly shift to electric vehicles, and Britain's planned departure from the European Union is creating uncertainty for businesses.

The Finance Ministry added that Germany's robust labour market should continue to support the domestic economy.

FX implications

German exports have actually been showing some signs of traction, for back in  September, the data showed that German exports posted their biggest rise in almost two years. October trade data is keeping hope alive that the economy can avoid a contraction in the final quarter – Exports have increased in seven of the last 10 months. The euro has been in a gentle incline vs the US dollar all the way from a low of 1.0878 in October to the 200-DMA and the 1.1150's in Dec.