Pound falters in forex trading as orders and output for SMEs drop

<p>The pound has tumbled in forex trading following news SME orders and output are down.</p>

The pound has faltered in forex trading this morning following news small and medium-sized enterprises (SMEs) have seen their domestic and overseas orders slide.

This is according to the latest quarterly SME Trends Survey from the Confederation of British Industry (CBI), which revealed today (November 5th) that total new orders fell to a balance of -13 per cent, reflecting declines both at home and abroad.

Output also slipped, with this figure retreating for the second quarter in a row to -9 per cent, but SMEs anticipate this data to improve slightly in the coming three months.

Furthermore, small and medium businesses reported that the number of people employed remained unchanged, but a slight reduction is predicted over the next three months.

Chair of the CBI's SME council Lucy Armstrong said: "The economic climate clearly remains tough, with businesses exposed to subdued conditions both at home and in our major export markets."

At 11:15 GMT today, the pound was lower versus both the dollar and euro, with £1 buying $1.598 and €1.248.

Find out about the pound and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.