UK trade balance revision

Hello,

I have a question regarding the recent UK trade balance price action.

consensus: -6600

actual:-6291

DIFFERENCE: +309

previous number: -6316

revision: -6933

DIFFERENCE: -617

309-617= -308 according to this number the gbp/usd should have moved
down. But it spiked up and after a retracement it continued to go up.

Why didn't the market care about the revision? Is it a general thing
that the market does not care about the trade balance revision?

Thanks,

Herringtrader

Hi herringtrader,

I think the market just showed us some very valuable info...It is not trading according to obvious fundamentals....instead, it is trading on sentiment for GBP strength. Often times, it appears the market moves in the opposite direction of fundies....and this let's us as traders see how strong the prevailing trend is....if bad news is shrugged off, you are immediately clued in to a strong trend upward....and good news will be amplified. That is why it is so important not to guess the reaction of the market to news. Instead, let it show you the way...

Hope this makes sense and doesn't sound like rambling nonsense ....(also, of interest...UK housing prices fell substantially -- yet the focus turned to the US housing market and turned what should have been GBP negative into USD negative -- Think we have something serious going on in US Econ. -- And FXNewstrader is on vacation! He called this situation w/the CDO's weeks ago!).

there is something you should understand about revisions in general. the timliness of data is very important. traders mostly care about what is happening NOW. a trade balance revision is saying something about what happened months ago, the information is very stale so it gets little attention. your probably thinking "then why does the NFP revision get so much attention?". and to that question i dont have a solid answer, other than to say that NFP has predicitive value for the entire economy, so even stale NFP info has some worth.