International Trade Figures Out This Morning

International trade is set to be released at 8:30 ET, and it is expected to show further decrease in May to a $42.7 billion deficit from the $40.9 billion deficit in April. Consensus range is from -$43 billion to a negative $38.5 billion, according to Bloomberg. The strong dollar has been a negative on goods exports though services exports have held solid. The dollar strength is correlated to changes in the chronic trade deficit run by the United States, since this trade imbalance stimulates greater demand for foreign currencies. The international trade balance on goods and services is the major indicator for foreign trade. Inflation-adjusted imports and exports are important components of overall economic activity, representing approximately 17 and 12 percent of real GDP, respectively. The level and especially changes in the level of international trade indicate relevant information about the trends in foreign trade. The international trade report also highlights bilateral trade balances with our major trading partners, with China being of particular concern as of late, In front of the release, S&P 500 futures are trading slightly higher at 2068.00, up 0.15 percent.