Pound Eases As U.K. Trade Deficit Widens More-than-forecast
October 09 2015 - 4:10AM
RTTF2
The pound erased its early gains against the other major
currencies in European deals on Friday, as data showed that U.K.
trade deficit widened more-than-forecast in August and construction
output fell for the same month at the fastest pace since 2012.
Data from the Office for National Statistics showed that the
U.K. visible trade deficit narrowed in August as car exports
increased from July.
The deficit on trade in goods fell to GBP 11.1 billion from GBP
12.2 billion in July. It was expected to fall to GBP 9.9
billion.
Separate data from the same agency showed that construction
output dropped 4.3 percent from July, when it fell 1 percent.
Economists had expected a 1 percent gain. The pace of decline was
the fastest since December 2012, when output decreased 5.1
percent.
The pound was firmer in the Asian session, as investors cheered
dovish minutes of the Federal Reserve's September meeting that
indicated the U.S. central bank is not in a hurry to raise interest
rates.
In European trading, the pound dipped to a 4-day low of 0.7411
against the euro, after rising to 0.7336 at 2:15 am ET. The pound
is seen finding support around the 0.75 mark. At Thursday's close,
the pair was worth 0.7343.
Reversing from an early high of 1.4865 against the Swiss franc,
the pound weakened to a 2-day low of 1.4725. On the downside, the
pound may possibly find support around the 1.46 level. The
pound-franc pair closed Thursday's trading at 1.4816.
The pound that climbed to more than 2-week high of 184.85
against the Japanese yen at 6:40 am ET slightly pared gains, with
the pair trading at 184.45. At Thursday's close, the pair was worth
183.98.
The pound, having advanced to more than a 2-week high of 1.5383
against the greenback at 2:25 am ET, retreated to 1.5335 in
subsequent deals. The pound-greenback was valued at 1.5344 when it
finished yesterday's trading. The pound is seen finding support
around the 1.52 region.
Looking ahead, U.S. import price index for September and
wholesale inventories for August are slated for release in the New
York session.
At 9:10 am ET, Federal Reserve Bank of Atlanta President Dennis
Lockhart is expected to speak about the US economic outlook and
monetary policy at the University of New York's Graduate School of
Journalism.
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