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Trade Balance
Hi Traders
Hope that you keep walking throw forex market...
U.S. Trade Balance is expected to be released tomorrow, December 11th, at 13:30 GMT, and you need to be prepared. Market events like this one tend to create either big changes to current trends or push current trends even further...
What is the U.S. Trade Balance?
The U.S. Trade Balance is the difference between the amount of goods and services exported versus the amount imported into and out of the United States. A positive number in this report indicates that there is a trade surplus, meaning the U.S. has exported more than it has imported. A negative number is the opposite: a trade deficit, also called a trade gap. A trade deficit results from importing more than the country exports.
This report is issued monthly, usually 40 days after the end of the month. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers. As such, if export demand grows, even marginally, it will indicate that the USD will gain some small momentum to its recent bullish strength. If, however, the trade deficit continues to worsen, the USD could potentially see a reversal...
Regards
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