US August trade deficit expected to widen sharply – Deutsche Bank
By FXStreet FXStreet (Delhi) – Jim Reid, Research Analyst at Deutsche Bank, suggests that the US trade deficit is expected to widen sharply (to $48bn from $41.9bn) in light of last week’s advance international trade data which showed a substantial deterioration in net exports.
Key Quotes
“On this, our US colleagues note that assuming there are no further revisions in today’s data and little offset from the trends in services, the deterioration in Q3 net exports could subtract about two full percentage points off output.”
“While inflation-adjusted consumer spending should help underpin Q3 growth, they note that in light of the latest data on net exports, they expect to reduce their projection of H2 real GDP growth in 2015.”
“Away from the trade data, also expected in the US this afternoon is the IBD/TIPP economic optimism reading for October. Fedspeak today is highlighted by George (due to give a key note speech shortly after lunch) and Williams this evening while shortly after the European close we are due to hear from the ECB President Draghi.”
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Source:: FX Street
