U.K. trade data is showing improvement today, prompting the sterling to make gains in forex trading against the U.S. dollar. In spite of the fact that the risk trade is off, and the FTSE 100 is down, the U.K. pound is making gains in currency trading on the trade data.

The hope is that the improved trade data is a sign that the recession is finally coming to an end in Britain. The U.K. has been limping along for months now, though, and it may be too soon to get too excited about improvements. After all, many times in the last few months investors have been excited to see the end of the recession, only to find that other problems linger.

While the improvement in trade data is certainly encouraging, a little more evidence that the U.K. economy is improving will be needed. And this will be necessary before the sterling can sustain its forex trading gains.

~

• Economic Data and Currency Trading
  Forex trading on the currency market