Trade Balance Deficit Shrinks — Sterling Gains

The Great Britain pound advanced today, erasing yesterday’s losses versus the US dollar, as the report showed that the increasing exports made the deficit of the UK trade balance lower than was predicted.

The UK deficit of trade balance narrowed to £7.1 billion in January, compared with the deficit of £9.7 billion in December (originally published as the deficit of £9.2 billion). The higher deficit of £8.5 billion was expected. The deficit shrank as the exports rose by £1.3 billion and the imports fell by £1.3 billion. The report tomorrow is expected to show that the manufacturing production in Britain advanced in January after the decline in December.