The US Trade Deficit widened 11% to $66 Billion in September. So why did the US Dollar make a bit run upward right after the report was released? Here is the chart -- look at how the deficit keeps rising. Click on the chart to make it bigger.
Last night, in the chart analysis that I do for 1 on 1 students, I talked about the fact that traders around the world are singularly focused on rising US interest rates, and no matter what, that's the focus. When rates are the focus, the Trade Deficit would have to be MUCH wider -- above $70B -- in order to force the USD down and keep it down.
Keep that in mind: it does not matter what the report says, it matters what is most important to traders right now. And believe me, the US Trade Deficit will come back into play later. Probably at the start of next year, say February. More on that as the situation develops.
