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Foreign exchange fundamental analysis of trade balance


a countrys cashback forex balance forex rebate club the difference between the total value of exports cashbackforexbroker imports surplus (TradeSurplus) means that the total exports are greater than the total imports, and vice versa is the cashbackforexexness (TradeDeficit), sometimes can also be seen as a country between savings and investment difference  foreign trade market is very concerned about the trade balance, because it can often indicate the forexrebateclub trend in the medium and long term, exports not only reflect the competitiveness of a countrys goods internationally, but also shows the degree of activity of the overseas economic market, while imports show the domestic economic trends . Because it can often indicate the medium and long-term trend of the currency, exports not only reflect the competitiveness of a countrys goods in the international arena, but also shows the countrys active degree of overseas economic markets, while imports show the domestic economic trends Trade surplus, although the economy of any country is a positive factor, but the long-term surplus may also trigger the rise of protectionism and increase the difficulties of exports Such examples are common usually a country with a large trade deficit will have a weaker currency because the supply of money has increased, but this negative impact may also give the amount of return investment to offset, the best example is the U.S. economy, the United States from the late 1960s began to have a trade deficit, so in 1971 had to abandon the gold standard system and use the dollar to replace Since then the deficit has been increasing, but it is worth noting that from 1991 whenever the U.S. economic growth slowed down the deficit is reduced, and vice versa is increased There are various ways to balance the trade balance, one of which is to make the national currency appreciation or devaluation, for a country with a trade deficit, devaluation is not an effective method, the currency devaluation after the purchasing power and reduced, it reduces imports, for a Trade surplus countries, there is a demand for the appreciation of its currency, as if the United States demanded the same as China Trade balance is generally published in the second month of the statistical period after the middle of the month or so

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