Currencies Direct MENU Let's talk currency +1 407 900 2174 News / UK trade deficit provides reason to be cheerful… (video) News UK trade deficit provides reason to be cheerful… (video) 13 March 2015 | By Davide Ugolini Share The UK’s trade deficit figures, released yesterday (12 March) were better than expected. The country’s trade deficit narrowed sharply in January, thanks to the fall in the price of oil. The gap closed to £616 million in January from a five-year high of £2.1 billion in December. Despite the positive data, Sterling continues to fall against the US dollar. Bank of England Governor Mark Carney said that a strong currency could drive down inflation, and that he is not in any rush to raise interest rates – dashing hopes of a rate rise in early 2016. … while US retail sales do not To say that the US’s retail sales report (the most important economic report of the week) was much weaker than anticipated would be a kind assessment of the market’s reaction. The decline in spending caught everyone by surprise and the dollar fell sharply against the euro and Japanese yen. Retail sales fell -0.6 per cent in February, after a fall of -0.8 per cent in January. The unexpected slump could be down to the harsh winter storms in the first two months of 2015. Looking ahead The market will be looking at the US economic calendar in the absence of significant data out of Europe today (13 March). February’s PPI report is expected to show inflation at 1.6 per cent. The University of Michigan report, which gauges consumer confidence, is due out today, and is expected to print slightly higher. The focus will turn next week on the Federal Open Market Committee meeting on 17 –18 March; the latest reduction in jobless claims and the recent drop in the unemployment rate will have investors looking for clues as to whether rates could rise in June or September. Share Davide Ugolini Davide joined Currencies Direct in 2012 after 7 years as a foreign exchange dealer across several EMEA markets. He now looks after a portfolio of UK corporate clients, helping them to manage their currency exposure and risk management needs. Davide speaks six languages and provides dealing and hedging solutions to Currencies Direct overseas clients in their native language. Contact details Davide Ugolini Senior Corporate Dealer Currencies Direct | 51 Moorgate, London, EC2R 6BH, United Kingdom T: +44 207 847 9477 | +44 207 847 9480 F: +44 207 847 9291 E: davide.u@currenciesdirect.com | www.currenciesdirect.com Find Davide on Google+ Newsletter Sign Up First name Surname Email address Which updates would you like? Weekly analysis Daily analysis Quarterly newsletter Daily rates Product news SIGN UP NOW Share Weekly Market Analysis: Euro crushed by high-riding US dollar 13 March 2015 Dollar strength is crushing all before it, but can it be sustained? Share CD South Africa: Rand still on the back foot 13 March 2015 The rand was not able to take advantage of the lull in the dollar rally yesterday. Share US retail sales in focus (video) By Philip McHugh 12 March 2015 The pound slipped against the US dollar yesterday . Share CD South Africa: Rand losses take a breather 12 March 2015 The rand held its ground against the US dollar yesterday. About Us Overview Corporate social responsibility Careers Key facts Partners Contact us +1 407 900 2174 Want us to call you? Email us Find your local office Refer a friend Recommend us to a friend and you’ll both get a £25 Amazon voucher when they make a transfer. Refer now Newsletter Stay up to date with rate changes and market updates. Sign up Facebook Twitter YouTube Google+ LinkedIn Cookies Privacy policy Terms of use Currencies Direct Ltd, 51 Moorgate, London, EC2R 6BH. Registered in England & Wales, No.: 03041197. Currencies Direct Ltd is authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 (FRN 504360) for the provision of payment services. HM Revenue & Customs Certificate of Registration for Money Laundering Regulation, Number: 12132225.