The British Pound surged nearly a 100 pips as the U.K trade balance shrank in November as exports reached the highest level in over a year. The trade deficit contracted to -6.75 billion from -7.0 billion as a weaker sterling and an improving global economy spurred demand for British goods.

Read more: DailyFX - Pound Finds Support on Rise in Exports, Euro Weighed As China Takes Measures To Slow Credit http://www.dailyfx.com/forex/fundame...#ixzz0cQPVhBMq

The Euro tipped higher from the previous day and maintained the narrow range carried over from the end of the December, and the exchange rate may continue to trend sideways ahead of the European Central Bank interest rate decision next Thursday as investors weigh the outlook for future policy.

Talking Points
• Japanese Yen: Modestly Higher Against Most Currencies
• Pound: U.K. Producer Prices Surge Higher in December
• Euro: Unemployment Rate Tops Forecast....

The British Pound rose to a high of 1.6066 during the overnight session, but failed to cross back above the 200-Day SMA at 1.6092 and remains little changed from the previous day as investors anticipate the Bank of England to hold the benchmark interest rate at 0.50% and maintain its GBP 200B asset purchase program at its policy meeting on Thursday.

Talking Points
• Japanese Yen: Down Across the Board
• Pound: Consumer Confidence Unexpectedly Weakens in December...

The British Pound fell to a low of 1.5857 against the greenback, with the RSI slipping into oversold territory, and the currency may continue to trend lower over the remainder of the week as price action breaks below the narrow range carried over from the previous week.

Talking Points
• Japanese Yen: Modestly Lower Across the Board
• Pound: U.K. Pledges to Support Economic Recovery
• Euro: Private Sector Loans Weaken for Third Month
• US Dollar:...

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