[MARKET ANALYSIS] DXY is flat overnight despite the geopolitical flare-up, while US CPI data looms

DXY: Flat

• Trades flat overnight after slightly weakening on Tuesday as yields marginally declined in tandem with lower oil prices following a report that a draft agreement has been sent to the US side for review. However, geopolitical tensions have since flared up again as the US conducted several brief waves of attacks on Iran for downing a US helicopter, while Iran retaliated by attacking US bases in the region. Nonetheless, the dollar was largely unmoved by the latest geopolitical headlines, while participants await today's US CPI data.

EUR/USD: +0.1%

• Ekes mild gains following the single currency's recent choppy performance, and with trade contained to relatively tight parameters within the 1.1500 handle.

GBP/USD: +0.1%

• Marginally extended on the recent upside and edges closer towards retesting the 1.3400 level, which it briefly breached yesterday but failed to sustain, as UK catalysts remained light.

USD/JPY: Flat

• Lacks firm direction and lingers just north of the 160.00 level despite firmer-than-expected Japanese PPI data and a Nikkei report that the BoJ is set to hike rates at its meeting next week.

Antipodeans: AUD/USD Flat / NZD/USD +0.1%

• Price action is constrained amid the mostly downbeat risk appetite and following the overall mixed Chinese inflation data.