International Trade

International Trade measures the difference in quantity between imports and exports of both tangible goods and services. Imports indicate demand for foreign goods and services here in the U.S., while exports show the demand for U.S. goods in overseas countries. Merchandise data are provided for U.S. total foreign trade with all nations, detail for trade with particular nations and regions of the world, as well as for individual commodities. Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. Furthermore, the data can directly impact all the financial markets, but especially the foreign exchange value of the dollar. The dollar can be particularly sensitive to changes in the chronic trade deficit run by the U.S., since this trade imbalance creates greater demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation. Because this report breaks down the trade with major countries it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country. Nevertheless, International Trade hardly ever moves markets. It is very dated, but it does provide clues about net exports in the following GDP release. International Trade is scheduled for release at 7:30 (CST) around the 19th of every month and is released jointly by the Commerce Department and the Bureau of Economic Analysis.

POTENTIAL IMPACT ON INTEREST RATES: LOW