Trade balance
Trade balance
This indicator demonstrates the ratio of the value of goods sold abroad to the value of goods bought by a country. Simply put it is the export to import of goods ratio. If the export value is higher than the import value then the trade balance is positive (active); and if vice versa the trade balance is passive (negative). A positive balance or an increase in the value of the negative balance (a growth in the value) is a precondition for a national currency rate to grow.
It has a considerable influence on the currency market but at the same time it is one of the more ambiguous factors affecting a currency's fluctuations from a trader's point of view. Besides that, it is a lagging indicator. You should only start to make trading decisions using this factor if it changes by more than 3 billion US dollars.
This Index's data is released on the third week of every month, usually on a Thursday at 08:30 EST (New York).
