Home UK trade deficit squeezes – GBP/USD still down
Forex News Today: Daily Trading News

UK trade deficit squeezes – GBP/USD still down

The UK goods trade deficit stands at 9.1 billion pounds for the month of August, better than expected. The total trade balance stands at 1.1917 billion pounds. However, construction  output dropped by 3.9%, worse than a rise of 0.5% predicted.

GBP/USD remains around 1.6050, unable to recover from the dollar strength felt earlier.

The UK trade balance deficit was expected to squeeze from 10.2 billion to 9.5 billion for the month of August. July’s number is now revised to the downside: 10.4 billion.

GBP/USD was tumbling down towards the  publication, as a result of a fresh assault by the US dollar. 1.6050 was the level just before the release.

The pound topped 1.62 yesterday, but this didn’t last too  long. The Bank of England left the rates unchanged as expected.

The big question remains:  Who will raise interest rates first – the US or UK?

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.