UK March trade balance report 11 May
- GBP -11.448 prev revised up from -12.461 prev
- trade balance Non-EU -4.674 bln vs -3.3bln exp vs -3.120bln revised up from -3.748bln prev
- trade balance -4.9blnvs -3.0bln exp vs -2.65bln prev revised up from -3.663bln
Softer headline but better revisions due to a downward revision in imports. Anyone still thinking that a weaker pound helps the UK trade balance given we're a nation of net importers and even out exporters mostly have to ship materials in first? Won't go unnoticed by Carney & Co in their deliberations today.
GBPUSD posts session lows of 1.2914 as UK output data disappoints too. EURGBP rally stalls into 0.8430
Say the ONS;
At the commodity level, the main causes of the widening of the deficit in Quarter 1 2017 were increased imports of machinery and transport equipment (mainly mechanical machinery and cars), oil and chemicals; these commodities also contributed the most to the increase in imports in March 2017.
Total imports increased by £2.9 billion between February and March 2017, with an increase in imports of goods from both EU and non-EU countries.
Full report here
