[B]Intra-Day Market Moving New and Views GBP/USD
08 Sep 2014
GBP/USD[/B] - … Cable was the biggest mover in Asian morning and continues to take centre stage at European open. Short-term specs (European early birds) were spotted selling sterling broadly earlier and intra-day sup at 1.6165 (NZ) gave way without heavy bashing, the pound touched a fresh near 10-month low of 1.6145 (Reuters).
Despite intra-day resumption of recent downtrend, as price is trading nearly 2 cents below Fri’s close of around 1.6331, further steep fall looks unlikely n risk is seen for another corrective bounce back twd Asian 1.6333 high later in the day.
Another piece of sterling-bearish news: British manufacturers are cautious about increasing levels of capital spending, a trade group said on Mon, raising questions as to whether a recent pick-up in business investment is sustainable in the long term.
A new survey by the EEF manufacturers’ group n Lombard Asset Finance (conducted between Apr 30 n May 14 with 173 companies responding) found that most firms had only moderate investment plans which focused largely on replacing outdated technology.
Business investment, key to boosting productivity, has grown for 5 quarters in a row but still lags well behind pre-recession levels and is below spending in other countries. Only 1 in 3 manufacturing firms taking part in the survey said they will invest the same on plant n machinery in the next 2 years as they did in the previous 2.
Earlier, the poll conducted by YouGov for the Sun Times forced those who had brushing off a lead by the supporters for Scottish independence eat humble pies at their breakfast tables yesterday.
Reuters reported showed supporters of independence had taken their first opinion poll lead since the referendum campaign began. With less than 2 weeks to go before the vote, the poll put the “Yes” to independence campaign on 51% n the "No: camp on 49%, overturning a 22-point lead for the unionist position in just a month.
British FinMin George Osborne said on Sun plans would be set out in the coming days to give Scotland more autonomy on tax, spending n welfare if Scots vote against independence in a historic referendum on Sept. 18. PM David Cameron had, ironically, vetoed a third ballot option for greater devolution, betting that the stark choice of yes or no to independence would deliver a clear victory for the status quo as cautious voters turned away from an uncertain future.
Osborne told the BBC “You will see in the next few days a plan of action to give more powers to Scotland … Then Scotland will have the best of both worlds. They will both avoid the risks of separation but have more control over their own destiny, which is where I think many Scots want to be.”