[MARKET ANALYSIS] DXY is flat in muted pre-NFP trade

DXY: Flat

• Price action is rangebound following the prior day's lacklustre performance in which it slightly weakened against most G10 peers, but kept to within tight ranges as traders awaited the incoming US NFP report, while the recent labour market proxies disappointed as initial jobless claims rose to 225k from 212k, above the top end of the forecast range, while Challenger layoffs rose to 97.006k from 83.387k. There was also recent Fed commentary with Fed's Daly noting that policy was in a good place, and the central bank was prepared to respond either way, while known hawk Schmid said the issue was whether the Fed needed to raise rates to "tamp this thing down" and meet the inflation target.

EUR/USD: Flat

• Trades little changed after recent price swings and with very light newsflow from the bloc.

GBP/USD: Flat

• Lacks direction as the data calendar for the UK remains light, while comments from BoE Governor Bailey provided little incrementally, in which he noted that markets had been orderly but stretched at times, and that leverage in debt markets raised questions over vulnerabilities.

USD/JPY: Flat

• Lingers around the 160.00 level as participants digest data, including the firmer-than-expected Labour Cash Earnings and Household Spending from Japan, although Foreign Reserves dropped by the most on record since the data series began in 2000. There were also some comments from Japanese PM Takaichi, who said there are pros and cons to a weak yen, as well as stated that investment strategy will help maintain trust in the yen and her economic policy is aimed at boosting Japan's economic capability, not at FX manipulation.

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

• Marginally softened amid the mostly negative risk tone and recent weakness in the commodities complex.