Research Team at BBH, notes that the UK’s trade balance improved in January but only because the December figures were revised to a larger shortfall. Key Quotes “The goods deficit was GBP10.29 bln after a revised GBP10.45 bln in December. The non-EU deficit slipped to GBP2.2 bln from GBP3.0 bln. The overall trade deficit narrowed to GBP3.459 bln from GBP3.699 bln. Separately, the UK reported a 0.2% decline in January construction spending. The consensus had expected an increase of the same magnitude. The disappointment was blunted by the sharp upward revision to the December series to 2.1% from 1.5%. With the initial Brexit risk adjustment made, sterling seems to be at the mercy of the overall dollar tone and the euro. Sterling is poised to recover further. Initial resistance is seen near yesterday’s high (~$1.4320). A break of it could signal a move toward $1.4400.” For more information, read our latest forex news.