Forex Flash: US Trade Deficit to narrow through higher exports – TD Securities

The US will release its Trade Deficit data and consensus expects the trade deficit to narrow from $-48.73B to $-45.80B. TD Securities too look for a slightly smaller trade deficit than consensus in December, “as the lagged impact from lower energy prices and further improvement in export activity temper the trade imbalance”. “We expect the deficit to narrow to $45.5B (consensus: $46.0). The outlook for the trade sector remains favorable as the lagged impact from the recent fall in energy prices and improvement in global demand should bolster net trade activity”, wrote analyst Richard Kelly.