Trade Deficit Forecast to Have Widened (And Ruminations on a Possible Tipping Point)

"Bloomberg, getting a jump on next week's news, tells us that expectations for the Commerce Department's report on the US trade deficit, due on July 11, is that it got worse. In general, increasing current account deficits (of which trade is the biggest component) put downward pressure on currencies. But our nasty conundrum is that the rise in the gap is due to rising price tags on commodities imports, notably oil. A depreciating dollar only makes matters worse."