FRA40 is trading at 5882.3, 0.06% down since previous day close. The European shares continued to trade weaker amid rising geopolitical tension between Russia & Ukraine after the former ordered mobilization of reserve troops in an escalation of the war in Ukraine. On global front, the hawkish FOMC future monetary stance although raising an interest rate by 75bps in its latest meeting dragged down the major indices.  The French Flash Manufacturing PMI fell to 47.8 from 50.6 in the previous month while the Flash Services PMI rose to 53.0 from 51.2 previously. The focus will remain on Fed Chair Powell’s speech today. As seen in the chart, the index is hovering near major support level of previous lows & hence, the cautious trading may be recommended for the day.

Natural gas is trading at $7.217, 0.12% down since previous close. The Natural Gas slid down on Thursday post release of Energy Information Administration (EIA) report which showed a rise in Natural gas inventory level by 103B from 77B in the previous week. This indicates more supplies against the steady demand & hence, prices fell down. Globally, the Fed raised an interest rate by 75bps as expected; how-so-ever hinted for more aggressive rate hikes until year 2023 to get an interest rate above 4.00%. This heavily weighs down the commodities. As seen in the chart, the Natural gas is trading near major Fibo level 61.8 which indicates the selling bias on higher levels on daily basis.

USD/JPY is trading at 142.417, 0.06% down since previous day close. The YEN slightly gained on Thursday post sell-off in the previous session FOMC hiked the interest rate as expected but remains more hawkish than expected for future monetary policy. Also, the Bank of Japan (BoJ) left an interest rate steady at -0.10% which makes the YEN on weaker side. On data front, the Japan’s National Core CPI grew by 2.8% from 2.4% in the previous month which slightly cushioned the pair USD/JPY. The Japan’s market is closed on account of national event which may limit the momentum in YEN. As seen in the chart, the pair is trading near MA (20) which acts as crucial level. The cautious trading recommended in JPY against the USD for the day.