USD Trade Balance


The balance between exports and imports of total goods and services released by the Bureau of Economic Analysis and the U.S Census Bureau. Trade Balance is one of the largest components of the U.S's Balance of Payment, thus providing valuable insight along with heavy pressures on the value of the dollar. A positive Trade Balance, or surplus, offers indication that exports are greater than imports. A trade deficit is experienced by the U.S when imports exceed exports. Trade deficits are derived from the tendency of foreign goods being purchased using foreign currency. This reflects dollars leaking out of the country. Such currency outflows may cause a natural depreciation of a dollar unless countered by similar capital inflows. In a bare minimum situation, surpluses will boost up the currency's value, while deficits will significantly weigh it down. There are also several factors which lessen the impact of US Trade Balance on the market. The report tends to not be timely as it comes quite a while after the initial reporting period. Aside from lack of timeliness, developments in many of the figure's components are also generally quite well anticipated. Lastly, the Balance should already have been felt during that month and not during the release of data. Because of the overall significance of Trade Balance data in the forecasting trends of the Forex market, however, the report has proven itself to be one of the most important out of the US.

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