[MARKET ANALYSIS] DXY is little changed after weakening yesterday on optimism regarding US-Iran talks

DXY: Flat

• Trades little changed after ultimately weakening yesterday as US-Iran talks seemingly continued despite the initial failure over the weekend, with a senior US official noting that talks between the US and Iran are continuing even now, and there is progress in trying to reach an agreement, while some US officials noted that the second round of face-to-face talks could take place on Thursday, as the sides seek a solution to the conflict ahead of the two-week ceasefire expiry next Tuesday. Nonetheless, nuclear remains the main sticking point as the US wants a longer moratorium on uranium enrichment than the Iranians, and the US also seeks for Iran to remove all highly enriched uranium, while the Iranians instead want a "monitored process of down-blending".

EUR/USD: Flat

• Takes a breather with a firm footing above 1.1700 after having benefitted from the recent retreat in the dollar.

GBP/USD: Flat

• Plateaued overnight after reclaiming the 1.3500 status and with little reaction seen following comments from BoE Governor Bailey regarding financial stability, in which he sees an increased likelihood of multiple vulnerabilities, and stated that they must stay vigilant.

USD/JPY: -0.1%

• Trickled lower towards the 159.00 level after the dollar recently dwindled, and with lower oil prices, supportive of the yen.

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

• Price action is rangebound amid the positive risk appetite and recent deterioration in Australian business and consumer confidence surveys, while participants also await Chinese trade data.