UK trade deficit widened in July, markets resilient to North Korea blast – Tip TV

In today’s opening segment of the London open show experts challenge the widespread belief that the currency devaluation leads to spike in exports and narrowing of trade deficit/rise in surplus.

Tip TV’s Zak Mir and Charlie Gibson, Head of Mining, Edison Research discuss the concept of ‘J curve’ which states a bout of currency devaluation is followed by a worsening of trade deficit followed by a recovery. Today’s UK trade deficit figure worsened in line with the ‘J curve’ concept.

Mir & Gibson also discuss the implications of North Korea’s nuclear test on the financial markets. The panel also discusses Broker forecasts and Oanda sentiment.