Investing.com - The U.S. trade balance fell more than expected in December, putting an end to two consecutive months of increases, official data showed on Tuesday.
In a report, Bureau of Economic Analysis said that U.S. trade deficit fell to a seasonally adjusted $44.3 billion in December, from $45.7 billion in the preceding month whose figure was revised up from $45.2 billion.
Analysts had expected the U.S. trade deficit to shrink to just $45.0 billion in the final month of 2017.
December exports were $190.7 billion, $5.0 billion more than November exports. December imports were $235.0 billion, $3.6 billion more than November imports.
According to the Bureau, the December decrease in the goods and services deficit reflected a decrease in the goods deficit of $1.2 billion to $65.7 billion and an increase in the services surplus of $0.3 billion to $21.4 billion.
For 2016, the goods and services deficit increased $1.9 billion, or 0.4 percent, from 2015. Exports decreased $51.7 billion or 2.3 percent. Imports decreased $49.9 billion or 1.8 percent.
Several market experts have recently commented that the trade balance will be under watch given President Donald Trump’s promises to revamp trade deals to help the U.S. economy and reduce the country’s trade deficit.
Trump has repeatedly pointed to high trade deficits with Mexico, China or other countries as proof that trade deals have been unfair.
Following the report, EUR/USD was trading at 1.064 compared to 1.0673 ahead of the release, GBP/USD was at 1.2360 from 1.2361 earlier, while USD/JPY traded at 112.40 compared to 112.38 before the publication.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 100.57, compared to 100.59 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures gained 56 points, or 0.28%, the S&P 500 futures rose 4 points, or 0.17%, while the Nasdaq 100 futures traded up 6 points, or 0.12%.
Elsewhere, in the commodities market, gold futures traded at $1,230.75 a troy ounce, compared to $1,230.30 ahead of the data, while U.S. crude oil was unchanged at $52.73.