Read the article and then consider the two questions.

U.K. Trade Deficit Widens, Manufacturing Output Drops To Add To Uncertainty

U.K.'s trade deficit widened and manufacturing production dropped in January, despite the pound's depreciation, adding more uncertainty to the British economy's outlook. Goods trade deficit narrowed to 8195 million pounds in Jan. from 8738 million pounds in Dec. as exports fell 3.5 percent to 24.8 billion pounds, while imports declined 4.2 percent. Services trade deficit reached 5.83 billion pounds while total trade deficit reached 2.36 billion pounds.

It seems that the U.K. is not able to benefit from the pound's drop versus euro and dollar, where the sterling fell sharply since the beginning of the year while it is currently trading near 16-month low versus the euro and at the lowest level since June 2010 versus greenback.

Adapted from http://www.actionforex.com/analysis/daily-forex-fundamentals/u.k.-trade-deficit-widens,-manufacturing-output-drops-to-add-to-uncertainty-20130312185694/

1. Why might this be considered as odd?

Read the article and then consider the two questions.

U.K. Trade Deficit Widens, Manufacturing Output Drops To Add To Uncertainty

U.K.'s trade deficit widened and manufacturing production dropped in January, despite the pound's depreciation, adding more uncertainty to the British economy's outlook. Goods trade deficit narrowed to 8195 million pounds in Jan. from 8738 million pounds in Dec. as exports fell 3.5 percent to 24.8 billion pounds, while imports declined 4.2 percent. Services trade deficit reached 5.83 billion pounds while total trade deficit reached 2.36 billion pounds.

It seems that the U.K. is not able to benefit from the pound's drop versus euro and dollar, where the sterling fell sharply since the beginning of the year while it is currently trading near 16-month low versus the euro and at the lowest level since June 2010 versus greenback.

Adapted from http://www.actionforex.com/analysis/daily-forex-fundamentals/u.k.-trade-deficit-widens,-manufacturing-output-drops-to-add-to-uncertainty-20130312185694/

2. Come up with at least 3 reasons that it might have happened.

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