Trading Forex - Dollar strengthens the Mediterranean resort of Commerce

Last week saw the U.S. dollar relative to the upward trends in most of the major currencies. The dollar has increased significantly in the euro and the pound sterling, however, in spite of the JPY. The greenback rose by a relatively positive U.S. economic data, which in the past week. The most striking indicator of the U.S. trade balance. The trade balance measures the difference between the value of the imported and exported goods and services in the month of February. Report forecasts that the deficit somewhat 36.0B to 36.6B spend. However, the actual result was shocking, and announced that the U.S. deficit declined only 26.0B, a nine year low, this indicator. The immediate response to this publication was obviously a huge increase in the dollar, taking into account the beautiful figure. However, in a wider, traders suspect the trend. The reason is simple: in general, the gap is narrowing as a result of expansion of exports, which indicates a strong and healthy economy. The problem is when looking deeper, the songs, it is very easy to see that the real reason for this is not the number of export growth, but also the weakening of imports, which the leaders of the United States fear the worst. The significant decrease in demand for imported goods and services means that more U.S. consumers tighten belts, in order to reduce the cost of the elongation of the recipe for a recession.

The weather is better, investors look at the complete picture of the report, which is the reverse pattern in the USD. As the week for much of the data is expected in the United States economy. Traders are advised to remain alert to the producer price index, which is an excellent gauge of U.S. inflation. It is also proposed that planning permission for the publication is expected on Thursday 12:30 GMT. This is one of the first inflation and economic reports released in the various housing reports. This is the largest in the market for companies to benefit from the effects. You see the dollar trading close 1,3100-1,3400 line this week.