Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
GBP Points South After Weak UK Data And Widening Trade Deficit

GBP Points South After Weak UK Data And Widening Trade Deficit

Nick Cawley, Senior Strategist

Share:

Talking Points

- UK trade deficit widens due to an increase in imports of ‘erratic goods.’

- GBP weakens on poor manufacturing and industrial production data.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.

The UK visible trade balance widened in February to -£12.46 billion from -£11.98 billion (revised) in January. The deficit on trade in goods and services widened to £3.7 billion in February 2017 from a revised deficit of £3.0 billion in January 2017, predominantly due to an increase in imports of erratic goods, according to the Office for National Statistics (ONS) release.

Commenting on today’s short-term indicators data, ONS senior statistician Kate Davies wrote, “While manufacturing was broadly flat in February, unseasonably warm weather reduced gas and electricity seun, pulling down overall production.The overall trade deficit worsened, but excluding erratic items the picture improved, as imports fell more than exports. There were small falls across a range of construction subsectors for the second month running, following a record performance for the industry at the end of 2016.”

UK industrial production year-on-year fell to 2.8% from a prior 3.3% and against expectations of 3.7%, while manufacturing production came in at 3.3%, missing expectations of 3.9% but beating January’s revised lower figure of 2.6%.

GBPUSD fell on the release with cable dropping to 1.24300 from 1.24700 as the latest batch of hard UK economic data points to a hard start to 2017.

Chart: GBPUSD 5-Minute Timeframe (April 7, 2017).

Chart by IG

--- Written by Nick Cawley, Analyst

To contact Nick, email him at Nicholas.cawley@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

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

DISCLOSURES