Talking Points
- The US current account beat expectations and narrowed further.
- The US Dollar slipped lower but all eyes are now focused on upcoming Fed talk.
- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.
The US current account deficit decreased in the fourth quarter to -$112.4 billion (prelim) from -$116.0 billion (revised) in the third quarter, according to statistics released by the US Bureau of Economic Analysis (BEA). The figure was expected to show a deficit of -$128.2 billion. The deficit decreased to 2.4% of current dollar-gross GDP from 2.5% in the third quarter.
“The $3.6 billion decrease in the current-account deficit mostly reflected a $19.9 billion increase in the surplus on primary income that was largely offset by a $17.5 billion increase in the deficit on goods. The changes in the surplus on services and the deficit on secondary income were relatively small,” according to the BEA.
The USD barely moved on the release as investors wait for speeches from three Federal Reserve Bank heads later in the session. Kansas City’s Esther George, Cleveland’s Loretta Mester and Boston’s Eric Rosengren are all scheduled to speak Tuesday.
The USD edged lower on the release but market reaction was fairly muted.
Chart: GBP/USD One-Minute Chart (March 21, 2017)
--- Written by Nick Cawley, Analyst
To contact Nick, email him at nicholas.cawley@ig.com
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