Sterling bears made a late appearance on Tuesday, after official figures showed that inflation in Britain climbed to its highest level for more than five years, in September.

Oil prices are on the rise as supply from Northern Iraq in the Kurdish territory have been reduced as tensions rise.

After enjoying a 4-week rally, the dollar came under pressure last week, falling against most of its major peers, leaving many traders questioning whether the most recent bull run is over for the greenback.

Iraq is moving troops around the Kurdish region of Iraq, putting at risk about 600,000 barrels of daily oil production at a time when global oil supply is tightening.

It’s been going on three years now and Iraq continues to overproduce and undercut the oil market.

Iraq's Kurdistan has agreed on new deals to borrow $3 billion from trading houses and Russian state oil firm Rosneft that will be guaranteed by future oil sales to strengthen its fiscal position as the semi-autonomous region fights Islamic State.

WTI Crude staged a savage rebound during trading on Wednesday with prices clipping $49 following the shocking OPEC production cut deal which eased some concerns over the excessive oversupply in the markets.

Oil prices jumped more than 8 % on Wednesday to a five-week high as some of the world's largest oil producers agreed to curb oil output for the first time since 2008 in a last-ditch bid to support prices.

Iran and Iraq are resisting pressure from Saudi Arabia to curtail oil production, making it hard for the Organization of the Petroleum Exporting Countries to reach a global output-limiting deal when it meets on Wednesday.

OPEC has a "technical deal" that could be solidified at a technical meeting this week in Vienna. All the major players are saying they are optimistic that a deal will be reached barring any last-minute blow ups. Saudi Arabia, Russia, Iraq and Iran all say that a production deal is within reach and it is possible that even the skeptics are starting to believe it.