News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Sources close to the Chinese Government have told Asia Markets a deal that will see China Evergrande (3333 HK) restructured into three seperate entities is currently being finalised by the Chinese Communist Party and could be announced within days.
  • Shadow MPC as hawkish as ever - They have been calling for the BoE to end QE early since June - Often a big difference in what people think a central bank should do and will do https://t.co/RAakSI8gI6
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqi8ZEe https://t.co/XfrcQXJu0Z
  • IFO lowers German 2021 GDP growth forecast to 2.5% from 3.3% - Raises 2022 forecast to 5.1% from 4.3%
  • 🇿🇦 Inflation Rate YoY (AUG) Actual: 4.9% Expected: 4.8% Previous: 4.6% https://www.dailyfx.com/economic-calendar#2021-09-22
  • 🇹🇼 Unemployment Rate (AUG) Actual: 4.08% Previous: 4.36% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇹🇼 Unemployment Rate (AUG) due at 08:00 GMT (15min) Previous: 4.36% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇿🇦 Inflation Rate YoY (AUG) due at 08:00 GMT (15min) Expected: 4.8% Previous: 4.6% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:💶 ECB Non-Monetary Policy Meeting due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-22
  • ECB's Muller - ECB to discuss raising regular QE when PEPP ends $EUR
Sterling Rises as UK Trade Deficit Drops to Lowest Level of 2012

Sterling Rises as UK Trade Deficit Drops to Lowest Level of 2012

Benjamin Spier, Technical Strategist

THE TAKEAWAY: UK trade balance for July at -1.157 billion Pounds, lower than expected -> Demand outside of the EU fuels export demand -> Sterling tests 4-month highs

The UK trade deficit dropped to the lowest level of 2012 as exports increased 9.3% and imports fell 2.1% in July. The trade balance totaled -1.517 billion British Pounds, higher then expectations for a -3.2 billion balance and above June’s revised -4.333 billion Pound trade balance.

The value of imports fell to the lowest level since February, according to the UK Office for National Statistics. UK exports to outside the EU increased by 2 billion Pounds and 17.3% in July, while imports from outside the EU slid 4.1%. The increase in total exports was led by oil, chemicals and consumer goods.

The rise in exports, which was accented by demand outside of the EU, is good news for the UK economy, which has contracted for the past 3-quarters. That’s why the British pound rose against the US dollar following the release of the trade balance and is now testing a 4-month high above 1.6030. The key 1.6000 level could provide support, and resistance could come in at 1.6057, by the 76.4% retracement of May’s decline.

GBPUSD 15-minute: September 11, 2012

Sterling_Rises_as_UK_Trade_Deficit_Drops_to_Lowest_Level_of_2012_body_gbpusd.png, Sterling Rises as UK Trade Deficit Drops to Lowest Level of 2012

“Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.”

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES