Forex Pros – The U.K.’s goods trade deficit widened unexpectedly in May, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the country’s goods trade deficit widened to a seasonally adjusted GBP8.5 billion in May, compared to a deficit of GBP7.6 billion in April, whose figure was revised from a deficit of GBP7.4.
Economists had expected the goods trade deficit to narrow to GBP7.3 billion in May.
Export prices of goods rose by GBP1 billion and import prices of goods rose by GBP1.8 billion.
The report said that the total trade deficit widened to GBP4.1 billion in May, compared with a deficit of GBP3.1 billion in April. Analysts had expected the total trade deficit to narrow to GBP2.7 billion.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD slumping 0.65% to trade at 1.5803.
Meanwhile, European stock markets were sharply lower. The FTSE 100 tumbled 1.75%, the EURO STOXX 50 plunged 2.2%, France’s CAC 40 plummeted 2.4%, while Germany’s DAX sank 2.3%.
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