Let's consider the key events for this week's trading
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.
There were no major moves during the Asian trading session, however we have some events today, which may affect the sentiment in the market.
The risk sentiment remains under pressure after the comments by China about the countermeasures against the US tariffs. Thus, the AUD/USD and the USD/JPY pairs will be under our attention.
On Tuesday, crypto assets dived, with Bitcoin decreasing below the psychologically crucial $5,000 mark for the first time this year…
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.