[MARKET ANALYSIS] DXY is flat amid quiet newsflow for the US outside of geopolitics and with the Fed in a blackout period

DXY: Flat

• Trades little changed amid a lack of pertinent catalysts for the US outside of geopolitics and with the Fed in a blackout period. On the trade front, US President Trump said maybe Canada should pay some damages for wildfires, and he spoke to Canadian PM Carney regarding the fires, but added that they have a good relationship with Canada and have no tension with anybody regarding trade.

EUR/USD: Flat

• Pared the early slight losses and returned to flat territory with little fresh catalysts for Europe and with the bloc facing a collapse in support for new economic sanctions against Russia as some members refuse to back measures that could damage their corporate champions. Looking ahead, the ECB is scheduled to decide on rates later in the week and is widely expected to stand pat, after hiking last month, but keep the option open for a September move.

GBP/USD: +0.1%

• Clawed back early losses to trade with mild gains as Andy Burnham prepares to take over as PM today, while he is reportedly to drop plans for a digital ID in a ‘reset of priorities’, and will focus on cost-of-living policies. There were also conflicting comments regarding North Sea oil as US President Trump posted that Burnham "stated that he will be opening up, all the way, the invaluable North Sea Oil!”, although FT reported that Labour Party Deputy Leader Powell said Burnham will stick to the ban on new exploration licences in the North Sea.

USD/JPY: Flat

• Trades indecisively at the 162.00 handle amid the mixed risk appetite and absence of Japanese participants for Marine Day.

Antipodeans: AUD/USD +0.2% / NZD/USD +0.2%

• Rebounded from an early dip alongside higher oil prices and resilience in the metals complex.