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Alongside the weaker than anticipated GDP print released yesterday, GBP was weighed down by data which showed a widening of the UK trade deficit in December.
The total trade balance for the UK over the final month of 2018 fell to -12100 million, worse than the -11946 million the market expected.
Brexit Stockpiling To Blame
A key driver of the increase was reportedly the rise in stockpiling undertaken by UK firms ahead of the UK’s scheduled EU departure date of March 29th.
In the face of such uncertainty, businesses have ramped up stockpiling operations which drove a significant increase in imports of cars, machinery, and chemicals.
The breakdown of the data shows car imports rose by £1.2 billion over the measured time period. Meanwhile, machinery imports increased by £300 million, and imports of other machinery and chemical items rose by £700 million.
Fears Of A Sharp Currency Fall Build
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