Pages

Wednesday, August 10, 2011

Pound Drops with Higher Trade Deficit

The Great Britain pound dropped after macroeconomic data provided today some unpleasant surprises, including the unexpected growth of trade balance deficit and decline of manufacturing.

The UK trade balance deficit widened to £8.9 billion in June from £8.5 billion in May. Traders hoped for decrease of the deficit to £8.2 billion. Manufacturing production declined with the annual rate of 0.4 percent in June. The contraction followed the advance by 1.8 percent in the month before. Market analysts predicted an increase by 0.3 percent.

Riots in London and other cities of Britain lead to massive damage to property and left one person dead. Several hundred was arrested. Police is busy with containing the riots and rumors state that army may be employed.

GBP/USD was little changed at 1.6302 as of 23:58 GMT after opening at 1.6315, rising as high as 1.6409 and falling as low as 1.6175. EUR/GBP jumped from 0.8688 to 0.8804 and GBP/JPY slipped from 126.82 to 124.49 before trading at 125.74.

No comments:

Post a Comment