• The US trade deficit shrunk in October, though not by quite as much as expected. 
• The DXY did not react to the data, though did recently break back to the north of the 96.50 level. 

The US goods and services trade deficit shrank to $67.1B in October from $81.4B in September, the US Census Bureau reported on Tuesday. That was larger than the expected trade deficit on the month of $66.8B. Monthly imports rose to $290.70B from $288.20B in September, whilst monthly exports surged to $233.60B in October from $206.80B the month prior. 

Market Reaction

The DXY has moved to session highs above 96.50 in recent trade, though the bulk of this move happened prior to the data release and seems to be more a function of broader risk appetite.