Release Explanation: It measures the country’s exports minus its imports and is the largest component of a country’s balance of payments. An increase or decrease in the Trade Balance will help determine the future economic outlook and growth numbers in a region. “The trade balance can influence all aspects of an economy as it is the way that region balances its books,” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: The U.K. deficit shrank for a third consecutive month in March to £6.6 billion, less than what market expected. The previous number was revised lower, from a deficit of £7.3 billion to £6.8 billion.
The UK’s deficit on trade in goods and services was £2.5 billion in March, compared with the deficit of £2.8 billion in February (originally published as a deficit of £3.2 billion).The surplus on trade in services was £4.1 billion, the same as in February.
TheLFB-Forex.com Trade Team notes “the trade balance release shows that consumption is slowing in the U.K, and at the same time, exporters have a hard time opening new trading routes, despite the much weaker pound.”
Forex Technical Reaction: The pound gained 30 pips during the release. Previously, the pair advanced at a strong pace during the European session, gaining more than 140 pips, much more than the other major pairs.