By CountingPips.com
The United States trade deficit increased for the second straight month in December as imports rose at a faster pace than exports, according to a release by the Commerce Department today. The U.S. trade deficit rose by $3.8 billion to a total deficit of $40.2 billion in December following a deficit of $36.4 billion in November. The December deficit surpassed the market forecasts that were expecting the deficit would rise to approximately $35.8 billion for the month.
Contributing to the increased deficit level was a rise in December imports by $8.4 billion to a total of $182.9 billion. This was the fourth straight monthly rise in imports. U.S. exports also rose for the month to a total of $142.7 billion which was an increase of $4.6 billion from November’s total.
The U.S. trade deficit with China fell in December, despite the overall deficit increase. The deficit with China fell to $18.1 billion in December from a deficit of $20.2 billion in November while other notable U.S. trade deficits were with the European Union at $6.4 billion, Japan at $4.6 billion, Mexico at $5.2 billion, OPEC at $6.8 billion and Canada at $3.0 billion.
U.S. trade surpluses with other countries for December included Australia at $1.1 billion, Hong Kong at $2.0 billion, Singapore at $0.8 billion and Egypt at $0.2 billion.
US Dollar trades higher in Forex Trading
The U.S. dollar has been trading higher today against most of the other major currencies in the spot forex market. The dollar has been stronger versus the euro, British pound, Australian dollar, Swiss franc, New Zealand dollar and the Japanese yen, according to currency data by Oanda. The American currency has fallen today versus the Canadian dollar.
Meanwhile, the U.S. stock markets traded lower today with the Dow Jones falling by 20 points to the 10,038 level while the Nasdaq decreased by 3 points to the 2,147.87 level. The S&P500 declined by 2.39 points to trade at the 1,068.13 level. Gold declined today by approximately $0.90 to trading around the $1,075.80 per ounce level while oil edged up by $0.70 to trade at $74.46 per barrel.
EUR/USD Chart – The Euro has been falling today versus the US Dollar in forex trading after rising in yesterday’s trading. The EUR/USD has fallen under the 1.3750 level while traders await the next developments in the Greece debt situation and the possible EU bailout. On a technical basis, the 50-period simple moving average (in red) has become a dynamic resistance level on the 4-hour chart below for this pair.
