GBP/USD is trading at 1.28662, 0.23% up since previous day close. The Pound strengthened against the USD on Tuesday after Fed officials showed the chances of pause in interest rate hike stance over the period of time. This overshadowed the negative effect of BRC Retail Sales Monitor data which grew by 4.2% lower than expectation 4.6%. Earlier, the hawkish Bank of England (BoE) monetary stance with a rate hike of 50bps made the Pound to trade on higher side. The result of labor data will remain in focus for the day. As seen in the chart, the pair is trading near Fibonacci Extension level of 61.8 which acts as a major resistance level. Buying on corrective dips may be recommended for the day.

GER30 is trading at 15814.3, 0.16% up since previous close. The European markets turned on higher side after Fed official Barr hinted for a pause in monetary policy tightening very soon in his speech on Monday. However, the focus will be on U.S CPI data release event which is to be held on Wednesday.  Last week, escalating trade-tension between U.S & China after China imposed curbs on exports of chipmaking materials to U.S made the indices to trade on lower side. The result of German ZEW Economic Sentiment data will remain in to focus for the day. As seen in the chart, although the GRE30 has crossed down the major MA (100); yet is may take support of previous lows & hence, slight buying bias may be established for the day if upside prevails further.

Gold is trading at $1926.33, 0.14% up since previous close. The flat to higher side momentum can be seen in gold prices since last two sessions amid soft USD after Fed official hinted for the chances of a pause in rate hike stance. Also, the soft U.S Non-farm Payroll figures limited the chances of aggressive interest rate hike in near future & hence, cushioned the precious metals. The China released weak inflation figures which made the gold range bound; for China is a major consumer of metals. The market will be looking forward to U.S CPI data release event this week.  Wait & watch strategy may be build-up for the day in Gold since the possibility of either side breakout can be expected on short-term basis.