The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
American trade deficit heads north to six-month maximum
In August, the American trade deficit rallied to a six-month maximum because exports slipped further in the face of slumping soybean shipments as well as imports reaching a record maximum, dropping a hint that trade could put pressure on economic rally in the third quarter.
On Friday, the Commerce Department revealed that the trade gap gained 6.4% reaching $53.2 billion, extending for a third straight month. July’s data was updated to disclose the trade deficit soaring to $50.0 billion versus the previously posted $50.1 billion.
The politically sensitive products trade deficit with China headed north by up to 4.7% hitting a record maximum of $38.6 billion.
Market experts interviewed by reporters had hoped the overall trade deficit would extend to about $53.5 billion in August.
The trade gap keeps widening notwithstanding the Trump administration's "America First" stance that has provoked a long-lasting trade clash between China and the United States.
The US government has also engaged in mutual import levies with the European bloc, Mexico, and Canada.
The current presidential administration told that eliminating the trade deficit will undoubtedly put the American economy on a sustainable path of faster surge.
When updated for inflation, in August, the trade gap extended to about $86.3 billion from July’s outcome of $82.4 billion, which appears to be the highest value since January 2006. The rally in the real trade deficit hints that in the first quarter trade could subtract nearly one percentage point from GDP.
As a matter of fact, trade contributed up to 1.2% percentage points to the American economy's 4.2 percent annualized surge temp in the second quarter, generally reflecting a front-loading of soybean exports to China before this country’s reciprocal duties came true early in July.
In August, exports of services and products slipped by 0.8% reaching $209.4 billion.
We expect the US-China phase one trade deal to be signed on Wednesday and multiple important indicators for the USD. Plus, it is the first week of the earnings reports
The British yearly CPI will be released at 11:30 MT on January 15
The Bank of Canada (BOC) will release its rate statement alongside the monetary policy report during its meeting on January 22 at 17:00 MT time.
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This week will bring us central bank statements and important economic indicators related to the main currency pairs. Read on to see which ones will be affected.