The US balance of payments current account deficit rose $20.6 billion in the first quarter to $195.7 billion, according to the report of country’s Commerce Department. This represents 3.6% of US GDP and is the largest deficit since the first quarter of 2007. The growing current account deficit reflects a record increase in the merchandise trade deficit, with merchandise exports from the United States at $408.6 billion, while imports increased to $677 billion.

The balance of payments is always an important fundamental factor in the Forex market. The growth of the negative balance is adverse for the dollar exchange rate. This factor, combined with the Fed’s soft monetary policy, allows us to count on the continuation of the upward trend in the EURUSD pair.

Trading recommendation: Buy 1.1910/1.1885 and take profit 1.1980.