Pound holds ground as UK trade deficit shrinks

<p>The pound is steady as the UK trade deficit narrowed in November.</p>

The pound has held its ground in forex markets today (January 9th) as the UK's trade deficit is reported to have narrowed in November 2012.

According to the Office for National Statistics, the 30-day period saw a slight shrinkage to £3.5 billion from October's £3.7 billion, as trade shifts away from the European Union (EU), with goods export volumes sliding compared to the previous year, while exports in the rest of the world increased.

There was a deficit of £9.2 billion on products which was partially offset by an approximate surplus of £5.7 billion on services.

In the three months to November, the volume of goods being shipped to the EU fell by 3.7 per cent and by contrast trade with the rest of the world rose by 6.8 per cent.

At 10:55 GMT, the pound was stable versus the dollar at £1 buying $1.606, while it rose by 0.1 per cent against the euro to €1.228.

Learn about the markets and forex trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.