[MARKET ANALYSIS] Dollar trades flat after ultimately strengthening yesterday on higher oil prices and mixed geopolitical headlines

DXY: Flat

• Dollar struggles for direction overnight after strengthening yesterday amid higher oil prices and initial punchy geopolitical rhetoric, but did pare some of the moves as later geopolitical updates were more encouraging. Nonetheless, price action has since quietened overnight with muted reaction seen to Trump adjusting certain metals tariffs to more effectively address national security threats and spur investment.

EUR/USD: Flat

• Trades sideways following a partial rebound from support near the 1.1600 level, and as EU CPI looms.

GBP/USD: Flat

• Paused overnight after the recent whipsawing with trade confined within the 1.3400 handle.

USD/JPY: Flat

• Retains a firm footing at the 159.00 level, which keeps the door open for questions on intervention, although Japanese Finance Minister Katayama refrained from commenting on FX intervention and current FX level, while she stated that changes to their FX warning phrases would risk confusing markets and reiterated that they are closely coordinating with the US on FX.

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

• Price action is contained amid the mixed risk appetite and with little reaction seen to a slew of data from Australia, which mostly missed expectations, including Current Account, Net Exports Contribution, Building Approvals and Company Profits.