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 shrunk in February to £7.3 billion, less than market expected. The previous number was revised higher from a deficit of £7.7 billion to £7.8 billion.
The UK's deficit on trade in goods and services was £3.2 billion in February, compared with the deficit of £3.1 billion in January. The surplus on trade in services was £4.1 billion, compared with a surplus of £4.7 billion in January
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 declined 100 pips during the European session on very strong momentum. The pound is now preparing for the BoE’s interest rate decision scheduled for 07:00 EST