Thread: Trade balance

If the export value is higher than the import value then the trade balance is positive (active); and if vice versa the trade balance is passive (negative). A positive balance or an increase in the value of the negative balance (a growth in the value) is a precondition for a national currency rate to grow.

Knowing the exchange rate is obviously critical for any foreign exchange trader, but information on the net exports in a country can help to predict future trends in inflation and foreign investment, and thus can give clues to the future behavior of any given currency market.

I would like to add that trade balance is a very crucial element and it bears a strong affect on the prices of different currency pairs. Most of the traders keep a watch on the numbers and trade accordingly.

I am trying hard to follow the export and the import values.. I cannot get informed about them so often and that cause me a few trades... How do you manage to be informed?