The Pound Sinks While the Deficit Surges

The pound has slipped close to its lowest level against the US dollar since June's Brexit vote, after official figures showed a worse than expected widening of the UK trade deficit.  
Sterling fell by more than half a cent against the greenback to below $1.21 for the first time in more than two months before recovering slightly.

It came after the Office for National Statistics (ONS) said the goods trade deficit - the gap between imports and exports - widened to a worse-than-expected £12.2bn in November.

The British Chambers of Commerce said the figures confirmed that "there is little evidence that the fall in the value of the pound is boosting the UK's overall trade balance".

ABC Comment: This could mean further austerity cuts as the government tries to balance the books.