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Dollar Loses on Good U.S. Trade Balance

October 11, 2007 (Last updated on December 2, 2009) by

A significantly improved trade balance of the United States was reported today with the value of -$57.6B ($1.6B improvement from previous month). While narrowing trade balance deficit is a good news for the whole U.S. economy a reaction on this news wasn’t very good on the currency market. Dollar stopped its strengthening and gave up almost 100 points against Euro currency hitting 1.4240 daily maximum on EUR/USD.

Some other good news came from employment sector of the economy, showing that only 308k jobless claims were issued last week, which is slightly better than 320k of the previous report.

On the bad side U.S. oil inventories had a rather sharp fall last week — 1.7M barrels, which is especially worrying just before the heating season. But the whole inventories volume is above average level, so it might be not so bad after all.

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