Sterling trims gains after weak data, wider trade gap

Published Fri, Apr 8, 2016 · 09:00 AM

[LONDON] Sterling dipped back below US$1.41 after a batch of UK data on Friday, trimming early gains against both the US dollar and the euro on the back of a surprise drop in Britain's industrial output and a wider than expected trade deficit.

Industrial output fell 0.3 per cent month-on-month in February to give a 0.5 per cent fall on the year, its biggest drop since Aug 2013. Economists had expected it to edge up by 0.1 per cent on the month and hold steady on the year.

The country's trade deficit in February was at 12 billion pounds, well above a 10.2 billion consensus forecast. January's reading was also revised up to 12.2 billion pounds.

Sterling slipped to US$1.4097 from US$1.4130 before the data was released, still up 0.3 per cent on the day. The euro inched up to 80.71 pence, having traded at 80.56 beforehand.


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