Balance of Trade

Balance of Trade

Balance of Trade is major Forex economic indicator which drives Forex market for currency of nation decides better or not also essential in Forex trading.

Balance of Trade Brief

  • A countries BOT is the economic value of all the products that it exports minus the economic value of its imported products. A positive balance of trade is when a country exports more than it imports. A negative balance of trade is when a country exports less than it imports.

Balance of Trade

  • A Negative balance of trade indicates that more money is being taken out of the economy, this means less money is available for investments that increase productivity. Every month the US balance of trade operates at a deficit of approximately -44 billion dollars.
  • When the deficit decreases from month to month that is positive for the US as that means less money is leaving the economy.

Balance of Trade Described

A country’s bot is the economic value of all the products that it exports minus the economic value of its imported products. Now, a positive bot is when a country exports more than it imports. And the negative balance of trade is when a country exports less than imports. So, the US as a negative balance of trade because the US imports more than it exports.

A negative bot indicates that more money is being taken out of the economy. As there are more imports and exports, so this means less money is available for investments that can increase production. Now, every month the US bot operates at a deficit of approximately negative $44 billion. So, this is bad

for the US. And this is because I am monthly deficit means less money in the economy to fund investments that can increase employment in the economy and productivity in the economy. So, high deficit is bad for a country and bad for that country’s currency. Okay know when the deficit decreases from month to month, that is positive for the currency. As that means less money is leaving the economy and if less money is leaving economy, this means there are more money in the economy to fund production. And to fund productivity.

So, a high monthly deficit is bad. So, whenever we see a decrease in the maintenance it this is positive for the US dollar and positive for the US economy. Now in the next lecture we be looking at tICS

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Use These Site to Get Fundamental Data

  1. Investopia
  2. Bloomberg
  3. FXstreet
  4. Ransquawk
  5. forexfactory

 

 

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