UK pound is still struggling, even after the release of positive trade data. Concerns about a possible exit from the European Union are causing concern for the sterling.
The latest trade deficit data indicates that the situation in the United Kingdom is improving. The Office of National Statistics has reported that the deficit narrowed to 1.2 billion pounds in April, representing the lowest level in more than a year.
There are hopes that the trade deficit will be less of a drag on the UK economy going forward if these improvements can hold. There is a lot of concern about the UK economy, and that’s been weighing on the sterling since economic growth can’t seem to get traction.
However, in spite of this good news, the pound is still struggling against its major counterparts. While the news on the economic front seems to be improving, there are still concerns about an upcoming referendum on EU membership. Uncertainty about the outcome has many Forex traders cautious about the sterling right now.
At 10:38 GMT GBP/USD is heading lower, dropping to 1.5302 from the open at 1.5349. EUR/GBP is higher, moving up to 0.7361 from the open at 0.7357. GBP/JPY is lower, falling to 189.8300 from the open at 191.0670.
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