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US currency account deficit widens less than expected

Thu, Mar 18 2010, 13:03 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - The US currency account deficit widened to $115.6B in the final quarter of 2009 from $102.3B in the previous quarter. The market had expected the gap to increase to $120.0B.

The Current Account released by the Bureau of Economic Analysis is a net flow of current transactions, including goods, services, and interest payments into and out of the US. A current account surplus indicates that the flow of capital into the US exceeds the capital reduction. Normally, a high reading is seen as positive (or Bullish) for the USD, whereas a low reading is seen as negative (or Bearish).

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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