• The smallest U.K. trade deficit in nearly a year helped sterling rebound from 20-month lows under $1.50 against the greenback. The pound was the latest currency this week to plunge to fresh lows against its rapidly outperforming U.S. counterpart. 
  
  
• But in a reminder of Britain's still solid economic fundamentals, the nation's trade gap improved more than expected, narrowing to a March 2014 low of £8.41 billion in January from a downwardly revised £9.93 billion. 
  
  
• Although the U.K. economy remains on a stable footing, sterling has faced stronger headwinds of late in growing unease ahead of spring elections and the accelerated slide in the euro against the dollar.