Forexpros Daily Analysis Jan 11, 2009
Fundamental Analysis: Trade Balance
The Trade Balance index will be published tomorrow (Jan 12) in the US, Britain and Canada. The Trade Balance index measures the difference in worth between exported and imported goods (exports minus imports). This is the largest component of a country’s balance of payments. Export data can give reflection on the country’s growth. Imports provide an indication of domestic demand. Because foreigners must buy the domestic currency to pay for the nation’s exports, it may have sizable affect on the domestic currency.
A higher than expected reading should be taken as positive/bullish for the currency, while a lower than expected reading should be taken as negative/bearish for the currency.
Analysts predict a reading of -36.40B for the US, -7.0B for the UK and 0.70B for Canada.
(via Forexpros)
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