Source: ForexYard
In a sign that a recently weakened US dollar (USD) is perhaps aiding the US economy’s growth, today’s trade balance figure came in just slightly lower than the forecasted deficit. Though not an entirely positive signal, the trade deficit grew by only $45.6B instead of the anticipated $46.0B.
Weakening the value of the USD both increases the ability of American firms to export goods while simultaneously reducing America’s buying power abroad (i.e. reducing imports). The expected result is a less-than-stellar, but better-than-forecast widening of the trade deficit, which should help improve America’s standing in the global arena.
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