The US trade deficit just refuses to go away.
Dollar slumps against sterling after record high US trade deficit
The dollar slumped against all major currencies after record high US trade deficit figures for June shocked the markets.
Official figures showed the trade deficit rocketed to 55.8 billion dollars in June from 46.8 billion in May, and against expectations for the deficit to narrow slightly to 46.9 billion.
"The figure took everyone by surprise and put a huge strain on the dollar," said Gary Noone, currency analyst at MMS International. He added that the shock was even greater because of speculation beforehand that the deficit was likely to be narrower than earlier predictions.
Sterling settled comfortably above the 1.84 level, compared with 1.8240 just before the trade data was released.
Looks like the US dollar is set to resume its downward journey.
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