The Pound struggled during Fridays session on news UK exports dropped in June, ending a quarter that saw the trade deficit widen to the most in almost a year. Overseas sales (exports) fell 1.6 percent from May and imports also declined as the UK’s trade gap widened to 9.4 billion pounds.
The figures underscore U.K. companies’ challenge to revive exports against the challenges of weak growth in the euro area and a stronger pound.
The Euro significantly strengthened throughout Friday after German exports and imports rebounded in June, suggesting the West's standoff with Russia over Ukraine is not seriously hurting Europe's largest economy. Despite the boost from trade, some economists see a chance of a contraction in gross domestic product (GDP) when data for the second quarter is released next Thursday.
Trade groups are also warning of further trouble from the escalating showdown with Russia, however despite this speculation the Euro went from strength to strength.
The Dollar made ground against the Pound after data revealed productivity of U.S. workers rose more than projected in the second quarter, rebounding from the biggest drop in more than three decades and helping to restrain labour costs.
The measure of employee output per hour increased at a 2.5 percent annualized rate, meaning companies that have been relying on wringing efficiency gains from existing staff may take on more employees and increase investment as demand grows.
There are no major announcements today.
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