Back
6 Feb 2015
Some loss of economic momentum in the US – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, notes that the sharp increase in US trade-deficit might result in a downward revision to real GDP growth in Q4, and also heighten near-term concerns over the USD strength.
Key Quotes
“The US dollar has continued to correct modestly lower in the Asian trading session giving back some of its strong gains from last month.”
“The reversal in the US dollar has coincided with a rebound in the price of crude oil, and recent evidence that the US economy has lost some upward momentum although is still growing solidly.”
“The latest disappointing economic data released yesterday revealed weak productivity growth and a wider than expected trade deficit.”
“Non-farm productivity contracted by -1.8% in Q4 following an upwardly revised 3.7% increase in Q3.”
“The US trade deficit widened sharply in December by USD6.8 billion to USD46.6 billion reaching its widest level since late 2012. It will result in a notable downward revision to real GDP growth in Q4 as the drag from net trade be even larger.”
“The sharp widening in the trade deficit was driven by weak exports which contracted for the second consecutive month by -0.8%, and a strong rebound in imports which increased by 2.2% in December.”
“The sharp widening in the trade deficit will also heighten some concerns in the near-term over the impact of the stronger US dollar.”
Key Quotes
“The US dollar has continued to correct modestly lower in the Asian trading session giving back some of its strong gains from last month.”
“The reversal in the US dollar has coincided with a rebound in the price of crude oil, and recent evidence that the US economy has lost some upward momentum although is still growing solidly.”
“The latest disappointing economic data released yesterday revealed weak productivity growth and a wider than expected trade deficit.”
“Non-farm productivity contracted by -1.8% in Q4 following an upwardly revised 3.7% increase in Q3.”
“The US trade deficit widened sharply in December by USD6.8 billion to USD46.6 billion reaching its widest level since late 2012. It will result in a notable downward revision to real GDP growth in Q4 as the drag from net trade be even larger.”
“The sharp widening in the trade deficit was driven by weak exports which contracted for the second consecutive month by -0.8%, and a strong rebound in imports which increased by 2.2% in December.”
“The sharp widening in the trade deficit will also heighten some concerns in the near-term over the impact of the stronger US dollar.”