The USA will publish unemployment claims on October 22 at 15:30 MT time. How to trade after the release?
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.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Riskier assets and gold ended last week with huge gains due to the weak US dollar’s performance. Let’s discuss what will drive the markets today.
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 14:45 MT time.