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Forex - GBP/USD pares gains after weak U.K. trade balance data

Published 01/12/2011, 04:54 AM
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Investing.com – Sterling pared gains against the U.S. dollar on Wednesday, following the release of data showing that the U.K. trade deficit widened more-than-expected in November.

GBP/USD retreated from 1.5681, the pair’s highest since December 15 to hit 1.5656 during European morning trade, gaining 0.37%.

Cable was likely to find support at 1.5511, Tuesday’s low and resistance at 1.5773, the high of December 15.

The Office for National Statistics said that the U.K.’s total trade deficit widened to GBP4.1 billion in November, compared to a deficit of GBP4.0 billion the previous month, it’s highest since August.

The goods trade deficit increased to GBP8.7 billion from October's GBP8.59 billion, the biggest trade deficit since records began in January 1980, beating expectations for a decline to GBP8.33 billion.

The surplus on trade in services was estimated at GBP4.6 billion in November, unchanged from the previous month.

Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.12% to hit 0.8326.

Later in the day, the U.S. was to publish a flurry of data, with reports on import prices and the federal budget balance while the Federal Reserve was to publish its Beige Book.

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