[MARKET ANALYSIS] Dollar rebounds alongside yields and oil, while FOMC Minutes loom

DXY: +0.2%

• Strengthened overnight alongside the rebound in yields and higher oil prices, while there were recent comments from Fed officials, in which Daly stated that she was very pleased and very supportive of the rate hike in September, as well as kept the door open on whether more will be needed. Furthermore, Schmid said there is still a way to go in beating inflation and that the central bank's credibility is at stake in the fight against inflation, while participants look ahead to the looming FOMC Minutes.

EUR/USD: -0.2%

• Pared some of the prior day's gains as the dollar recovered, while the latest rhetoric from ECB officials provided little to shift the dial, while the single currency was also unaffected by reports that the French Government is willing to bypass parliament to pass billions in cuts.

GBP/USD: -0.2%

• Pulled back following its recent advances, with price action largely driven by the dollar and US yields as catalysts for the UK remain light. Nonetheless, participants continue to look for clues on the Budget announcement later this month, with Chancellor Healey said to consider a major intervention to cut energy bills for poorer households, while Morgan Stanley has recommended shorting GBP/USD at 1.3220 with a target of 1.2850 and a stop of 1.3350 ahead of the UK Budget.

USD/JPY: +0.2%

• Climbed higher and gained a firmer footing above the 158.00 level amid a firmer buck and higher US yields, while Labour Cash Earnings data from Japan slowed from the previous, but still topped forecasts.

Antipodeans: AUD/USD -0.1% / NZD/USD -0.2%

• Price action is contained with mild headwinds amid the negative mood in Asia and lack of currency-moving data.