The pound is on the back foot. After enjoying a beat on services PMI, sterling is now hit by domestic data.
The balance of trade for the UK came out at a wide deficit of 12.46 billion, worse than 10.9 predicted. In addition, the previous number was revised to the downside. While UK exporters enjoy a weaker pound, many need to import raw materials from abroad before making their goods for exports.
A miss came also from the industrial output which dropped by 0.1% against a forecast for a rise of 0.3%. Also here, the shortfall was compounded by a downwards revision.
The head of the Bank of England Mark Carney is speaking as well, but he hasn’t made any significant comments so far.
Pound/dollar is now trading at 1.2435, down from a high of 1.2477 earlier in the day. Clear support awaits at 1.2415. Note that the pair has made two attempts to move lower earlier in the week. So far, the line stands firm.
The next big thing for markets is the US Non-Farm Payrolls. See how to trade the NFP with EUR/USD.
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