U.K. current-account deficit widens in Q3, fall in pound had little impact on exports

Data released by the Office for National Statistics (ONS) showed on Friday that UK's current account deficit widened towards record levels in the third quarter. UK's trade deficit widened to 2.8 percent, the most since the fourth quarter of 2013.

The current-account deficit widened to £25.494bn for the third quarter, from a deficit of £22.079bn in the second quarter. It was lower than economists' expectations. The deficit rose to 5.2 percent of GDP from 4.6 percent and edged closer to the record percentage level of 6 percent in 2013.

The Bank of England has highlighted the current-account deficit as a potential risk, particularly if Brexit deters foreign investment. It’s forecast to be double that of the U.S. this year at more than 5 percent of GDP.

Weaker pound could partly allay the concerns by boost exports and reduce spending on imports. Economists see the gap narrowing to about 4 percent in 2017, making Britain less reliant on the willingness of foreigners to keep buying U.K. assets.

FxWirePro's Hourly GBP Spot Index was at -39.3884 (Neutral) at 1325 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.