U.S. current account deficit widens in Q4 2017, likely to widen further in quarters ahead
Source: FxWire Pro - Commentary / 21 Mar 2018 12:07:35 Eastern Standard Time
Current account deficit of the U.S. widened in the fourth quarter and is likely to continue to grow larger. The current account deficit widened to USD 128.2 billion, the largest deficit since the fourth quarter of 2008. The gaping USD 214.3 billion deficit in international trade in goods was partly countered b the USD 60.4 billion surplus in international trade in services. Also, Americans earned more income on their overseas investments than they had to pay to foreigners.
Foreigners continue to be willing financiers of the red ink in the U.S. current account. They made USD 54.2 billion worth of foreign direct investment purchases in the fourth quarter. Net inflows of portfolio capital reached USD 84.9 billion in the fourth quarter.
“We forecast that the current account deficit will widen further in coming quarters, which should continue to exert modest downward pressure on the U.S. dollar”, stated Wells Fargo in a research report.
At 15:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 28.0945. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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