Investing.com - The pound extended early losses on Wednesday after reports showing that while U.K. industrial output rebounded in November, the country’s trade performance deteriorated as a result of the drop in sterling since the Brexit vote.
GBP/USD was down 0.43% to 1.2122 from around 1.2150 earlier, re-approaching Tuesday’s two-month trough of 1.2106.
The Office for National Statistics said industrial output rose 2.1% in November, recovering from October’s 1.1% drop.
Economists had forecast an increase of 0.8%.
Industrial output was up 2.0% from a year earlier, outstripping forecasts for a 0.6% increase.
Manufacturing output rose 1.3% after a 1.0% contraction in October and was up 1.2% compared with a year earlier.
A separate report from the ONS showed that the U.K.'s goods trade deficit with the rest of the world widened to £12.16 billion in November.
Goods exports rose by a record amount to just over £27 billion, but imports also hit an all-time high of almost £39.2 billion as the fall in the pound drove up the cost of imports.
A deterioration in the trade balance could have a negative impact on the U.K.’s growth prospects.
Another report released by the ONS showed that U.K. construction output fell 0.2% in November from a month earlier, but was up by 1.5% on the year.
Sterling was also weaker against the euro, with EUR/GBP climbing 0.24% to 0.8686, still below the two-month peak of 0.8762 set on Tuesday.
The pound has come under heavy selling pressure this week after British Prime Minister Theresa May said Sunday that the country would not be keeping "bits" of European Union membership.
The remarks were seen as an indication that the UK won’t try to negotiate continued full access to the European single market when it leaves the EU.