The trade deficit shrank to 5.557 billion Euros in June thanks, to increased exports, from a revised gap of 7.159 billion (-7.623) the previous month. Exports increased to 52.117 billion Euros from 50.810 billion the previous month. Imports were relatively stable at 57.674 billion in July compared to their June level of 57.969 billion.

The balance on energy goods improved by 300 million Euros on increased exports and a drop in imports. Manufactured goods saw its balance widen by 200 million Euros, the same as the consumer balance, while investment and intermediate goods were stable.

Yesterday's US trade report showed its goods deficit with France contracting to 881 million Dollars from 961 million in June on a non-seasonally adjusted basis. The US exported 4.707 billion worth of merchandise to France, up from 3.859 billion the month before. Imports from France to the US rose to 5.587 billion in July from 4.820.

While the trade report from the French customs office provides limited data, the data from the US for July shows results that should be more to the liking of the US, with the deficit contracting. Next month will provide the first month in which will start showing the full effect of US tariffs.

The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets. Given the size of the French economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.