On Tuesday afternoon, the GBP/USD pair is trading to the upside, despite the statistics on the balance of trade.
The British Pound s slowly recovering on Tuesday after several trading sessions of sales earlier. Buyers are not too enthusiastic, but the rebound of the price itself looks quite positive. The current quote for the pair is 1.4432.
According to the statistics published today, the trade balance deficit in the UK in March was -3.83 billion of Pounds against the previous number of -4.30 billon. The current number is the lowest for the trade balance indicator. The indicator itself estimates the balance between import and export. Reduction of the deficit usually provides support to the national currency.
Recently, the trade balance deficit in trading with the European Union countries has significantly reduced, and this fact might as well be used by the European Union in the talks with the United Kingdom concerning the summer referendum. The idea of the popular vote and making such decisions is complicated and very speculative when it comes to both finances and moral collectivity. Strengthening of trading relations in the EU may be the leverage able to prevent the British people from separating from the Europe by means of economic borders.
For the British Pound, such reflections are another reason to stay near the downside border of the mid-term trading range. So far, doubts in this respect are not too obvious, but they will get stronger as the date of the referendum approaches.
RoboForex Analytical Department
Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.