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.
The UK’s unbalanced economy has analysts at investment bank UBS saying an UK exit from the EU will allow the British pound to hit parity against the euro. And this is not necessarily a bad thing.