There were no data releases from the UK yesterday. Sterling traded below a recent one-month high against the dollar on Monday, as uncertainty about Britain's place in the European Union and diminishing rate hike prospects kept investors cautious. "There are still concerns about slowing economic momentum in the United Kingdom, while ongoing uncertainty over whether there will be a Brexit referendum to vote on UK membership of the EU should continue to haunt investors."
A YouGov poll released late last week showed those campaigning for Britain to leave the European Union had taken a nine-point lead. The poll showed 45 percent of Britons would vote to leave the bloc compared with the 36 percent who want to remain. Nineteen percent said they did not know or would not vote. Markets and punters are betting that the referendum is likely to be held in June.
Traders expect uncertainty stemming from the referendum to keep the pound choppy in the coming months and possibly force the central bank to keep rates lower for longer. Most economists think Brexit would hurt growth in the short-run -- Citi predicts a 4 percent hit over three years.
Tomorrow's session will bring UK Trade Balance data. Analysts are predicting decrease in deficit to 10.4 billion pounds. In the US session JOLTS Job Openings figures will be published. Increase by 5.54 million is forecasted.
Figures to watch:
Trade Balance (Tuesday 10:30)
JOLTS Job Openings (Tuesday 16:00)
