U.S. Trade Balance (Feb.) Drops

Although February’s U.S. Trade Balance report shows a marked improvement, aggregate levels remain relatively weak.

Shain Vernier•Wednesday, April 17, 2019•1 min read

During the pre-Wall Street open, the U.S Trade Balance (February) fell by 3.4% to its lowest level in eight months. Growing exports in automobiles and airplanes were the leading reasons for the drop, with the final tally coming in at -$49.4 billion. The markets have largely ignored the data, with the DJIA (-25), S&P 500 (-2), and NASDAQ (-8), falling modestly for the first half-hour of trade.

Foreign trade has been a staple of the Trump administration’s agenda. Although February’s trade balance figures are an improvement, levels still remain weak. Given no resolution to the U.S./China trade standoff or Congressional ratification of USMCA, most analysts are expecting this number to grow as 2019 rolls on.

S&P 500 Reverses Off Of Early Highs

The S&P 500 SPX has reversed its course following a test above Tuesday’s upper extreme. For the session, the S&Ps are now in the red, falling from intraday highs above 2923.00.

June E-mini S&P 500 Futures (ES), Daily Chart

Overview: From a technical standpoint, there really isn’t a whole lot to say about the S&P 500. This market remains in bullish territory and the uptrend of 2019 is valid. Buying dips is an ideal way to trade this market, assuming the daily ranges open up a bit from current levels. If we see a negative close today, then a late-week long trade may come into play.

During the U.S. overnight session, China’s GDP outperformed projections on a year-over-year basis. Also, China’s Industrial Production shattered estimates (5.9%), coming in at 8.5%. For the moment, it appears that traders are taking these figures into account and limiting exposure to the U.S. indices.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.