Forex Pros – The euro eased off a daily low against the pound on Wednesday, after official data showed that the U.K.’s goods trade deficit widened again in December from November’s record gap.
EUR/USD retreated from 0.8476, the daily low, to hit 0.8486 during European morning trade, easing up 0.08%.
The pair was likely to find support at 0.8418, Tuesday’s low and resistance at 0.8531, the high of February 3.
The Office for National Statistics said that Britain’s goods trade gap widened to GBP9.2 billion from GBP8.4 billion in November. Economists had forecast a broadly steady reading of GBP8.6 billion pounds.
Excluding volatile trade in oil and goods such as aircraft, Britain’s goods trade deficit rose to GBP8.1 billion from GBP7.3 billion, its highest since monthly records began in 1980.
The total trade deficit, which includes services, deteriorated to its worst level since August 2005, increasing to GBP4.8 billion from GBP3.9 billion.
The euro was also higher against the U.S. dollar with EUR/USD rising 0.18% to hit 1.3649.
Also Wednesday, official data showed that Germany’s trade surplus rose more-than-expected in December, increasing to EUR14.0 billion, up from EUR11.8 billion in November.
ForexPros.com
