The pound drifted higher against its key counterparts in European trading on Tuesday, as latest poll results showed surging support for the U.K.'s membership in the European Union and as the Bank of England estimates the U.K. inflation to rise gradually this year.

The latest ORB Telegraph poll showed the supporters for remain camp surged to 55 percent, a 13-point lead over the 'Leave' campaign, whose campaigners stood just 42 percent.

The poll found older voters and Conservative supporters, who relied on Brexit, have turned to the pro-EU campaign.

In its annual report, the BoE concluded that the UK inflation is likely to rise gradually through 2016, while the Brexit could slow growth and weaken the currency exchange rate.

Speaking before the Treasury Select Committee, the BoE governor Mark Carney said that the monetary policy committee is united about the assessment on material negative impact on U.K. economy, if Britain votes to leave the EU.

The BoE chief indicated that the U.K. interest rate may probably rise, if Britain remains in the EU, contrary to the Brexit vote that reduces chance of a rate rise.

In economic front, figures from the Office for National Statistics showed that the U.K. budget deficit narrowed less than expected in April.

Public sector net borrowing excluding public sector banks decreased GBP 0.3 billion from last year to GBP 7.2 billion in April. It was forecast to fall to GBP 6.4 billion.

The pound was trading mixed in Asian deals. While the currency rose against the yen and the franc, it held steady against the euro and the greenback.

The pound appreciated to 0.7644 against the euro, its strongest since February 4, and a 1.3 percent rise from Monday's closing value of 0.7746. The pound is seen finding resistance around the 0.75 mark.

Survey from the Centre for European Economic Research or ZEW showed that Germany's economic sentiment weakened for the first time in three months, defying expectations for improvement as financial experts do not expect the strong performance of the economy in the first quarter to continue.

The ZEW Indicator of Economic Sentiment for Germany dropped to 6.4 from 11.2 in April. Economists had forecast a score of 12.

The pound spiked up to a 5-day high of 1.4622 against the dollar, up from yesterday's closing quote of 1.4483. If the pound-dollar extends rise, 1.48 is likely seen as its next resistance level.

The pound firmed to 1.4508 against the franc, a level unseen since February 4. This marks a 1.3 percent gain from an early 6-day low of 1.4317. Continuation of the pound's uptrend may see it challenging resistance around the 1.47 region.

Data from the Federal Customs Administration showed that Switzerland's trade surplus increased in April as exports recovered amid a fall in imports.

The trade surplus increased to CHF 2.5 billion in April from CHF 2.2 billion in March.

Reversing from an early low of 158.10 against the Japanese yen, the pound rose to a 4-day high of 160.31. Continuation of the pound's uptrend may see it challenging resistance around the 162.5 region.

Looking ahead, U.S. new home sales data for April and U.S. Richmond Fed manufacturing index for May are set to be published in the New York session.

At 9:00 am ET, the euro area finance ministers are scheduled to meet in Brussels.

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