Published by Zeb BhamSterling has gained strength on the foreign currency exchange markets following positive trade and retail data.Latest figures revealing a narrowing of Britain's trade deficit have helped to firm up the pound's position on the foreign currency exchange markets.While the latest data was positive, economic recovery remains fragile, Reuters reports.The global goods trade gap fell to £6.784 billion in November, which helped to give sterling a boost on the markets. An increase in retail sales also helped to boost optimism about the state of the UK economy, the news agency stated.Chief sterling strategist at Barclays Paul Robinson told the news provider: "The trade data was mildly positive, though I think the retail sales numbers were more important - they suggest that growth has been reasonably strong."Further data to show whether the UK pulled out of recession in the final quarter of last year is expected shortly. Should such findings be positive, sterling may receive another boost on the foreign currency exchange markets.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site