GBP/USD is trading at 1.39369, 0.03% up since Tuesday. The Sterling Pound appreciated against the USD after FOMC Powell showed a cautious approach towards interest rate hike on Tuesday. Last week, the sudden hawkish stance hinted by Fed regarding two interest rate hikes in the year 2023 turned out to be positive for USD & negative for other currencies. The U.K Public Sector Net Borrowing dropped to 23.6B from 28.3B in the previous month & the CBI Industrial Order Expectations rose to 19 against the estimation 16. The result of PMI figures will remain into focus for the day. As seen in the chart, the pair GBP/USD formed a double bottom at major support of previous lows & hence, slight buying may be recommended for the day.

WTI Oil is trading at $73.15, 0.28% up since Tuesday. The Oil prices seems to be trading stronger post release of API report which showed a drop-down in Oil stocks level by 7.19 mbpd against the expected fall of 3.62 mbpd. Besides this, optimism towards global recovery increases & hence, this raises consumption demand of Oil. Also, the clearance over Iranian nuclear deal remains suspicious curtaining the output level from the country which reduces supplies & hence, made the oil more expensive. The result of U.S EIA report will remain into focus for the day. As seen in the chart, the Oil is trading near major resistance of multi-year highs & hence, buying on corrective dips may be recommended for the day.

FRA40 is trading at 6594, 0.01% up since previous day close. The FRA40 is expected to open on higher side on Wednesday following other global peers post Fed Powell’s speech in front of Congress which showed an adoption of cautious approach towards interest rate hikes in the future course of time. Last week, the FOMC hinted a rate hike chances & also, may hit tapering talks which widely slid down the FRA40. Besides this, easing down of lockdown restrictions in the country amid progressive vaccine supplies remains a positive factor on long term basis. The result of PMI figures will be closely monitored on Wednesday. Further buying may be suggested for the day in FRA40 since an index is strongly trading within the bullish cannel pattern.