[B]Intra-Day Market Moving News and Views
02 Dec 2014
GBP/USD[/B] - … Cable pares yesterday’s sharp gain after price staged a near term reversal from a fresh 14-month low of 1.5585 to as high as 1.5763 (NY) as intra-day sharp jump in the U.K. Brent crude from a 5-year low of $67.53 a barrel to $72.40 triggered broad-based short-covering in sterling (eur/gbp fell from 0.7977 to 0.7924).
Although price has eased in tandem with intra-day retreat in eur/usd in subdued Asian trading, suggesting consolidation below said yesterday’s high wud continue until European open. Today, U.K. Nov construction PMI will be due out at 09:30GMT ahead of Wed’s release of a slew of important data as well as FinMin Geroge Osborne’s annual Autumn Statement to Parliament.
Initial bids are noted at 1.5715-00 area with some stops below there.
On the upside, offers are tipped at 1.5755/65 with stops reported above 1.5780, suggesting buying cable on dips is the way to go.
The Chancellor of the Exchequer George Osborne will give his annual Autumn Statement to Parliament on Wed. The statement provides an update on the govt’s plans for the economy based on the latest forecasts fm the Office for Budget Responsibility. These forecasts will be published alongside the Autumn Statement tom.
WSJ reported Osborne is expected to deliver the message that Britain is in for another dose of gov’t belt-tightening if his Conservative Party wins a general election next year, as data show the economy’s recovery remains patchy.
The closely watched update on Britain’s public finances comes at a delicate time for Osborne n his close ally, PM David Cameron, who are preparing for an election in May. Their economic record will be a central issue n a key question will be whether U.K. voters will be willing to stomach further cuts n return the Conservative Party to power.
Economists expect Osborne to present forecasts showing that despite the economy’s return to growth he remains years away fm meeting his self-imposed goal of closing the U.K.'s budget deficit. That implies tax increases or further cuts to public spending will be needed after 2015.
“I think the British public understands that difficult decisions need to be taken so that Britain can live within its means,” Osborne said Sun in an interview with the BBC.