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?
