Negative Visible Trade (deficit) indicates that imports of goods are greater than exports. When exports are greater than imports, the UK experiences trade surplus. Trade surpluses indicate that funds are coming into the UK in exchange for exported goods. Because such exported goods are usually purchased with Pounds, trade surpluses usually reflect currency flowing into Britain, such currency inflows may lead to a natural appreciation of Pound Sterling, unless countered by similar capital outflows. At a bare minimum, surpluses will buoy the value of the currency.
Release Date: 8:30 (GMT); monthly, within 40 days following the reporting month There are multiple factors that work to reduce the market impact of UK Visible Trade on markets. The report is not released at the most convenient time, roughly forty days after the reporting period. Developments in many of the components that make up the figure are usually well expected. Lastly, since the report reflect data for a specific reporting month, any important changes in Visible Trade should have been already felt during that quarter rather than during the release of data. Because of the significance of Trade on Foreign Exchange Rates, the figure has a history of being one of the most important reports out of the UK.
The headline figure is expressed as the value of the merchandise trade surplus or deficit in billions of Pounds.