UK Goods Trade Deficit Narrows by £2.968 Billion to $7.1 Billion, GBPUSD Near New Highs - 11.9.2012

The UK Trade Deficit on goods reduced to £7.1 billion in July down from a revised deficit of £10.068 billion in June according to the Office of National Statistics. Economists were expecting the Trade Deficit to reduce at £9.00 billion, however it narrowed more than expectations improving further the Trade Balance. The Office of National Statistics also reported that the seasonally adjusted UK deficit on services and goods narrowed to £1.5 billion compared with a deficit of £4.3 billion in June, the deficit on goods in July was in part offset by a surplus in services estimated at £5.6 billion. The British pound against the US dollar remains close to 4-month high at 1.6033 attempting to retest the highs after the release of a narrowed deficit, the currency pair bounced from 1.6016 to 1.6031, it was lastly seen at 1.6029.