Reported US Trade Deficit Widens

The US trade deficit for December 2011 (reported by the US Commerce Department) widened by almost 50 billion USD, the most month over month increase since last June. The recent relative weakness of the dollar, coupled with the improving US economy, increased the demand for imports.

More than half of the 2011 deficit came from trade with China. This report comes right before a US visit by Chinese heir apparent Xi Jinping. This data could increase US industry opposition to trade with China and create pressure for legislation. Both nations have been engaged in trade actions such as punitive duties since 2009, and the political seasons in both the US and China are likely to encourage further calls for such action.

Source: AFP

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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