Yet again we see the chasm between domestic and international activity widen
It's another report that we can clap and cry over
Domestically we see some very good signs, especially in the investment categories. Consumption and index of services are probably the spots not showing huge strength
Trade wise, we've just it show the biggest quarterly drag on record. Exporters are facing the same issues everyone else is, a weak global economy. While it's bad for trade the jump in imports is at least showing that we're buying and that could mean that we're doing a lot of business with Europe
So it's another picture where domestically there doesn't look to be any problems, and it's the same old same old internationally. For the BOE, they can only really influence the domestic workings of the economy (unless they target the currency) so will see this data in a positive light
The pound doesn't really care about the details and is seeing poor trade for reasons of a strong currency, and therefore the BOE to remain dovish
We've gone through support at 1.5050 and there will be a big fat bullseye on 1.50 now
