The difference between imports and exports of goods. Visible Trade differentiates itself from Trade Balance because it does not record intangibles like services, only reporting on physical goods.
Negative Visible Trade (deficit) indicates that imports of goods are greater than exports. When exports are greater than imports, the UK experiences a trade surplus. Trade surpluses indicate that funds are coming into the UK in exchange for exported goods. Because such exported goods are usually purchased with Pounds, trade surpluses usually reflect currency flowing into Britain, such currency inflows may lead to a natural appreciation of Pound Sterling, unless countered by similar capital outflows. At a bare minimum, surpluses will buoy the value of the currency.
Mar 11, 2020
Why Traders Care
Because Britain’s economy is highly trade driven, Visible Trade data can give critical insight into developments in the economy and into foreign exchange rates.