The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
In March American budget deficit tacks on by 18%
In March, the deficit of the American state budget accounted for up to $208.743 billion. The given outcome happens to be 18.4% more than the figure for the same month in 2017 or to be exact $ 176.233 billion. That’s what the country's Finance Ministry unveiled.
The budget revenues went down by 2.7% demonstrating an outcome of $210.832 billion, including income tax collections, which went down by 2%.
At the same time, expenses increased by 6.8% and reached $419.576 billion. In particular, it could be explained by an increase in interest payments on public debt by 11%, as well as increased costs in social programs as well as medical insurance.
For the six months of the 2018 fiscal year, which burst out on October 1 2017, the negative balance of the US budget increased by 13.8% to $599.708 billion compared to$ 526.857 billion for the same period in 2016.
The amount of budget revenues since the beginning of the current financial year increased by 1.6% hitting the value of $1.497 trillion, while expenses managed to grow by 4.8% to almost $ 2.097 trillion.
The White House predicts this increase in the budget deficit to about $804 billion.
The US budget deficit for the 2017 financial year, which ended on September 30, headed north by approximately 13.3% ending up with an outcome of $665.826 billion. Thus, it rose to up to 3.5% of GDP against 3.2% of GDP in the previous year.
The last time the budget surplus was fixed in the USA was 2001. In 2009, there was a maximum deficit in the country's history, which accounted for - $1.41 trillion, which is 9.8% of GDP.
The average size of the country's budget deficit for the last 50 years appears to be 2.8% of GDP.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…