The pound rose AFTER the news about the trade balance, as it usually does after there is some good news about the economy - more people want to put their money into the UK.
As you rightly suggest, this may then have the effect of reversing what had previously happened, although the US dollar is not the only exchange rate that determines UK trade, and other factors apart from the exchange rate affect the amount of imports and exports.
I dont realy get it.
ReplyDeleteHow can exports rise when the value of pound increase?
The pound rose AFTER the news about the trade balance, as it usually does after there is some good news about the economy - more people want to put their money into the UK.
ReplyDeleteAs you rightly suggest, this may then have the effect of reversing what had previously happened, although the US dollar is not the only exchange rate that determines UK trade, and other factors apart from the exchange rate affect the amount of imports and exports.