[MARKET ANALYSIS] DXY is little changed ahead of inflation data later in the week and despite the US announcing an import ban on some Canadian goods as trade war escalates

DXY: Flat

• Trades range-bound after the choppy mood on Tuesday as geopolitical developments dictated oil price swings ahead of US CPI and PPI this week, while the greenback failed to track the move higher in 2yr yields and oil prices. Furthermore, there was little reaction in the FX space to the US announcing an import ban on alcohol and other goods from Canada in response to the latter's tariff retaliation.

EUR/USD: Flat

• Lacks direction with price action confined within tight parameters at the 1.1600 handle with very few pertinent drivers and the absence of tier-1 data from the bloc, while participants await tomorrow's ECB rate decision.

GBP/USD: +0.1%

• Ekes slight gains in range-bound trade and after the rhetoric from BoE officials did little to shift the dial.

USD/JPY: -0.2%

• Trickled lower beneath the 154.00 level amid the ongoing BoJ rate hike expectations, while there were also comments from US Treasury Secretary Bessent, who dared traders to bet against him regarding the yen and said that he has good insight into what the BoJ and policymakers will do.

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

• Remains afloat in uneventful trade amid a quiet calendar on both sides of the Tasman and following the inline-to-slightly firmer-than-expected Chinese inflation data.