In a sign that a weakened US dollar ( USD ) is perhaps aiding the US economy's growth, today's trade balance figure came in below the forecasted deficit. Though not an entirely positive signal, the trade deficit grew by only $44.8B instead of the anticipated $50.6B.
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.
Read more forex trading news on our forex blog .