THE TAKEAWAY: UK trade balance rises to a six month high -> Construction output declines 0.8% -> Cable continues to rally ahead of release
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The UK trade balance reached a six month high in June, but continued to show a deficit for the 28th consecutive month.
The trade deficit was reported at 1.548 billion pounds, lower than expectations for a 2.2 billion deficit and down from the 2.612 billion Pound trade deficit in May. The trade to non-EU countries narrowed to -2.646 billion Pounds from -4.019 billion in May.
UK construction output declined 0.8% (seasonally adjusted) in June, down from the revised -0.2% change in output reported in May.
Besides for the UK data, the European session was fairly quiet. Chinese industrial production beat expectations for July, rising 9.7% from July of 2012. Also, Japanese consumer confidence fell to 43.6 in July, which was contradicted by the BoJ report saying consumer confidence had improved.
The Pound didn’t see much of a reaction following the release, but Cable has continued a rally today that began in July. The pair might see resistance by a previous high at 1.5606, and support may come in by a broken upper trend line currently near 1.5500.
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GBPUSD Daily: August 9, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .