The British sterling lost ground in early deals on Tuesday following a report showed that the U.K. trade deficit narrowed to GBP 2.7 billion in March.
The U.K. trade deficit came in at GBP 8.6 billion in March, unchanged compared with February, the Office for National Statistics said today. The expected shortfall was GBP 8.4 billion.
The visible trade deficit with EU nations widened to GBP 4.5 billion, while the shortfall with non-EU countries fell to GBP 4.1 billion.
Exports of goods rose by 5.8 percent to GBP 26.4 billion in March. At the same time, imports grew 4.2 percent to GBP 34.9 billion.
The Greek political deadlock continues to weigh on sentiment as political parties failed to form a government, raising fears the debt-laden country may renege on bailout pledges and exit from Europe's currency union.
Meanwhile, Eurogroup President Jean-Claude Juncker dismissed talks on Greece's exit from Eurozone as "propaganda" and said there was "absolutely no discussion" on Greece during Monday's euro area finance ministers' meeting.
"I don't envisage, not even for one second, Greece leaving the euro area. This is nonsense, this is propaganda," Juncker was quoted as saying at a post-meeting press conference late Monday, while calling on Greek politicians to form a coalition government that will stick to the deficit reduction program.
He also hinted that the European Union may discuss a possible easing in budget consolidation targets if the new government remains fully committed to the ongoing austerity drive.
The pound reached 1.6040 against its US counterpart around 7:10 am ET, its lowest level since April 20. The cable is presently worth 1.6050 with 1.6010 seen as the next likely support level.
The pound that tested yesterday's fresh multi-year peak of 0.7965 against the euro at the beginning of the Asian session pulled back to an intra-day low of 0.8016 around 6:40 am ET. On the downside, the pound may find target around the 0.8030 level.
The German economy expanded more than expected in the first quarter of 2012, data released by the Federal Statistical Office showed today. Gross domestic product rose 0.5 percent from the prior quarter, when it fell 0.2 percent. Economists had expected only 0.1 percent growth for the first quarter.
Against the Swiss franc, the British currency reached a low of 1.4989 around 6:45 am ET and the pair held steady thereafter. The pound-franc pair is presently hovering around the 1.50 level with 1.4870 seen as the next probable downside target level.
The pound also reached as low as 128.20 against the yen before holding steady around 7:10 am ET. If the sterling weakens further, likely support level is seen around the 128.0 level.
Japan's consumer confidence dropped unexpectedly in April, reflecting deterioration in willingness to buy and assessment of current overall livelihood, survey results from the Cabinet Office showed today. The consumer sentiment index dipped to 40 from 40.3 a month ago. Economists were forecasting the index to rise to 40.8.
Looking ahead, the U.S. advance retail sales and CPI - both for April, business inventories for March, NAHB housing market index and Empire manufacturing index for May are scheduled for release in the New York morning session.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.