Explanation of foreign exchange terms: trade account

The external trade balance refers to the difference between customs exports and imports within and outside the region. If exports exceed imports, it is a trade surplus; if exports are less than imports, it is a trade deficit.

A trade deficit, indicating a net outflow of funds, is negative for the euro; if there is a trade surplus, indicating a net inflow of funds, it is positive for the euro.

In Western countries, current account data is usually released monthly or quarterly, but a month's trade data is not a big reference for the market, and the quarterly adjusted current account is more important.

importance

In the 1970s and 1980s, the current account deficit was onceforeign exchange marketIt had a large impact, which has now faded, but for the United States, the current account deficit still has a large impact on the dollar.

The trade account score reflects the state of commodity trade between countries, is an important indicator to judge the state of macroeconomic operation, and is also one of the important indicators for the basic analysis of foreign exchange transactions.