The British pound tumbled to 8-1/2 month low of 1.5535 versus the dollar as broad concerns about sovereign debt highlighted Britain's own grim fiscal position and an ICM Ltd. survey for the Sunday Telegraph newspaper showed the U.K. opposition Conservative party’s lead over Prime Minister Gordan Brown’s Labour party narrowed to nine points, suggesting the election that must be held by June will fail to produce a clear winner. Although short-covering lifted the price in Europe and rose to as high as 1.5660 in NY afternoon, cable then retreated as DJI moved from positive into negative territory and ended the day down 103 points to 9908.  
  
The Japanese yen traded inside a narrow range of 89.15-89.57 versus the greenback throughout the day as higher risk appetite lowered the demand for the safe-haven currency.   
  
Economic data to be released on Tuesday include Japan machine tools orders, Germany current account, CPI final, HICP final, trade balance, U.K. trade balance, BRC retail sales, RICS house price balance and U.S. wholesale inventories.
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