After touching its highest level since December 2014, US exports in July moderated by .3% m/o/m which was pretty much matched by a .2% fall in imports which led to little change in the trade deficit. Exports still remain about 3% below the peak in 2014 which coincided with a US dollar index level that was between 80-85. The drop in exports was driven by auto’s and consumer goods, mostly offset by a rise in food/drinks and capital goods. Also within imports, auto’s dropped for the 3rd month in the past 5 for reasons we all know. Bottom line, the deficit coming in $1b lower than expected might lead to a very slight increase in Q3 GDP estimates.