Time: 12:30 am GMT, Morocco time: 1:30 hours, Egyptian time: 3:30 hours, Saudi time: 4:30 hours, UAE time: 5:30 hours
Previous: -61.2B Expected: -64.1B Actual: -64.3B
US Trade Balance Index
The US trade balance index is the difference between the value of US exports and imports.
This indicator reflects the extent of the US economy’s balance, as the value of exports exceeding the value of imports indicates a trade surplus, while if the value of imports is greater, it indicates a trade deficit.
When the indicator comes out lower than expected:
• This means a wider trade deficit for America.
• This indicates that foreign companies are achieving greater demand for their commodities in the American markets.
• This may put pressure on the value of the dollar.
• However, it may indicate an improvement in global economic prospects and global demand.
In general, the indicator aims to balance at a value of zero. It is at this point that exports and imports are balanced and the US economy is at its best.
The effect of the US trade balance index on the US dollar trading in Forex?
The US trade balance index can greatly influence the prices of the US dollar in the currency trading market. For the following reasons:
• When the index reaches higher than expected levels, indicating a broader trade surplus for the US. This pushes the rise in the value of the US dollar because the US economy appears to be stronger.
• While the lower-than-expected index readings, which indicate a worsening trade deficit, put pressure on the dollar’s value. Because the US economy seems weaker.
• In addition, the high readings of the index may increase the chances of increasing interest rates by the Federal Reserve, which supports the attractiveness of the dollar.
• While lower readings increase the possibility of lowering interest rates to stimulate the economy, which weakens the attractiveness of the dollar.
Thus, it can be said that the index plays an important role in shaping market expectations regarding the performance and health of the US economy. Which is reflected in the value of the US dollar immediately.
The body responsible for issuing the US Trade Balance Index
The body responsible for issuing the US Trade Balance Index is the US Department of Commerce, as the index is issued by its Bureau of Industry and Trade Analysis. The US Department of Commerce collects data on the value of US exports and imports every month from a large number of companies and merchants involved in international trade. Then the ministry calculates the difference between the value of exports and imports, and thus calculates the US trade balance index.
The release date of the US Trade Balance Index
Released monthly, about 35 days after the end of the month
next release
Jan 9, 2024
