On Thursday the Commerce Department put out a report that showed our trade gap had fallen 2.7%
to 42.4 billion which is the lowest it has been since September 2016. exports of goods and services
increased 0.4 percent to $195.3 billion, the highest level since December 2014. Also Imports of goods and services dipped 0.1 percent to $237.7 billion in August. This increase in exports and decrease in imports shows the effects the strength of the US dollar has on trade. Since the US dollar has been weaker of late, our goods are less expense causing an increase in exports and foreign goods are more expensive causing a decline in imports.
It will be interesting to see the trade deficit is effected as the FED begins unwinding their balance sheet which will help to put an upward pressure on interest rates.
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