Back
11 Feb 2013
Forex Flash: UK and US Trade data shows clear trends in energy dependence – Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that both the US and UK released trade data for December at the end of last week and could not have shows any clearer trends in energy dependence.
He sees that the US data was encouraging, showing the smallest monthly deficit since January 2010, while the UK data was not far from expected. He writes, “The data do however show divergent trends in the balance of trade in oil. The individual monthly data are distorted, but the trends are clear – the US’ energy deficit is shrinking quickly and the UK’s oil deficit is growing steadily. North Sea oil is running out and the US is at the start of an energy boom. The latter has attracted a lot of attention in the press but it is beginning to show up in the data and there are is a lot further to go.”
He sees that the US data was encouraging, showing the smallest monthly deficit since January 2010, while the UK data was not far from expected. He writes, “The data do however show divergent trends in the balance of trade in oil. The individual monthly data are distorted, but the trends are clear – the US’ energy deficit is shrinking quickly and the UK’s oil deficit is growing steadily. North Sea oil is running out and the US is at the start of an energy boom. The latter has attracted a lot of attention in the press but it is beginning to show up in the data and there are is a lot further to go.”