Sterling strengthens mildly against as 46.5m Britons are ready to vote on the EU referendum in UK. The race is certainly tight according to the latest poll results. A poll by ComRes for the Daily Mail and ITV (LON:ITV) News showed 48% supported "Remain" and 42% supported "Leave" with 11% undecided. Another YouGov poll for the Times showed 51% supported "Remain" to 49% supported "Leave". However, there are other online polls that showed more support for the Brexit camp. Polling stations will be open today from 0700 to 2200 UK time. At around 0030 tomorrow, the first major centers of Sunderland and Newcastle will likely announce results. But full results would probably be available at around 0500. So, while the pound would probably be steady today, much volatility could be seen starting tomorrow UK time.
Financial markets are mixed for the moment. FTSE closed up 0.56% yesterday. But US indices closed mildly lower with DJIA down -0.27% and S&P 500 down -0.17%. Asian markets, however,are higher with Nikkei trading up 0.4% at the time of writing. 10 year yield in US shot above 1.7 to 1.711 overnight but closed down at 1.685. WTI crude oil failed to hold on to 50 handle and closed at 49.43. Gold, on the other hand, also extended recent pull back and is trading below 1270. Dollar index is pressing recent support at 93.42 and could be heading towards 91.91 low. In the currency markets, Sterling remains the strongest major currency this week followed by commodity currencies. Yen stays the weakest, followed by Euro and Dollar.
On the data front, Japan manufacturing PMI rose to 47.8 in June but missed expectation of 48.2. PMI data will be the main focus in European session. Both Eurozone PMI manufacturing and services are expected to drop slightly in June. US will release jobless claims, new home sales and leading indicators later in the day.