UK Current Account

The Pound was carrying losses against many currencies for the week on Friday with some having followed the release of Office for National Statistics (ONS) figures revealing what appeared to be a crisis of confidence in the UK and Sterling last quarter. 

The UK currenct account deficit stood at £8.6BN in the second quarter of 2021, far smaller than the -£15.6BN the consensus was looking for and smaller than the -£12.8BN recorded in the first quarter.

The UK's current account deficit shrank in the first quarter of 2021, a development that is fundamentally supportive of Sterling exchange rates on a long-term basis.

The UK's current account deficit widened substantially in the final quarter of 2020 as the demand for goods imports increased and earnings on investments abroad were hit by the covid-19 crisis, confirming a fundamental achilles heal of Pound Sterling valuation remains intact.

The UK economy contracted by less than was expected in the second-quarter, the Office for National Statistics (ONS) revealed on Wednesday but with the government withdrawing financial support while tightening restrictions on activity, the data offers little consolation to the bruised economy ahead of a likely bleak winter. 

Britain's road to recovery may have grown longer on Tuesday and the bill for the damage done by the coronavirus larger after the Office for National Statistics (ONS) revised its estimate of first-quarter GDP lower, citing a larger than expected fall in household spending. 

The public finances improved notably in November but the economy is still on course to slow again for the 2018 year, according to economists.

Pound Sterling trades with a soft tone ahead of the weekend and the Christmas break amidst ongoing uncertainty as to how the Brexit impasse in the UK parliament will play out. Today trader focus will be on GDP, current account and public finance data releases.

The Pound steadied into the final session of the week despite a larger-than-expected widening of the currenct account deficit during the second-quarter, a fall in business investment and downward revision to first-quarter GDP numbers ahead of a weekend that could see political instability return to haunt Sterling. 

Bumper exports have helped shrinked the UK's current account deficit in the first quarter of 2018 the ONS reports.

The ONS has released a tranche of economic statistics on Friday, September 29 including GDP, Business Investment and the Current Account.

When it comes to the Pound - keep the current account in mind - it is arguably the single most important economic concept when it comes to determining currency value.

The UK's current account deficit - the millstone that hangs around the Pound’s neck - fell sharply in the final quarter of 2016 it has been revealed.

An expected structural rotation of the UK economy away from an unhealthy addiction on imports to one that is able to export more, is not happening.

A busy end to the month for Pound Sterling with markets likely to focus on the outcome of a raft of official statistics that will give a gauge of post-referendum economic performance.

The UK’s trade deficit with the rest may start closing as the decline in the UK’s Pound makes UK produce cheaper on the international market.

The CBI has reported that Britain’s SMEs are expecting to boost exports over coming quarters as the UK becomes more competitive thanks to a devaluation in the overvalued Pound Sterling.

The pound to euro exchange rate’s trajectory will ultimately rest with whether or not the UK can continue convincing investors to keep plugging the hole in the UK’s bank account with the world.

A larger than expected jump in exports sees the UK’s trade deficit for March narrow.

Latest trade numbers confirm the UK’s Current Account Deficit is likely to remain as wide as ever confirming the pound’s ultimate liability won’t disappear anytime soon.