How the Strong Dollar Is Masking a Weaker Trade Deficit

The US trade deficit widened to $77.6 billion in May, but Lucas and Luna argue the headline number is misleading. With the dollar index near 100.8 and the yen at 162 to the dollar, currency moves are distorting trade flows. They examine why a strong dollar actually inflates the reported deficit by making imports cheaper in dollar terms while exports look smaller. Using China's slowing growth and the weak yen, they explain how currency effects are hiding a deteriorating real trade balance. They also touch on the ECB's rate rethink amid Hormuz tensions and what that means for global trade. Plus, a brief honest moment about how listener support keeps the podcast ad-free. #TradeDeficit #StrongDollar #USDJPY #USDCNY #CurrencyDistortion #ChinaSlowdown #YenWeakness #ECB #HormuzTensions #ImportPrices #ExportCompetitiveness #FederalReserve #TradeBalance #CurrentAccount #Economics #FexingoBusiness #BusinessPodcast #TradeDeficitPodcast Keep every episode free: buymeacoffee.com/fexingo