[MARKET ANALYSIS] DXY is rangebound amid mixed geopolitical signals despite Trump's 10-day deadline extension

DXY: Flat

• Pauses overnight after ultimately gaining yesterday alongside higher oil prices and rising yields, with updates for most of the day heading in the opposite direction of the initial optimism sparked from Trump's announcement on Monday. Nonetheless, the dollar momentarily wobbled in late trade after US President Trump announced a 10-day extension to the pause on strikes on Iranian energy plants, which he said was at the request of Iran which had wanted an additional 7-day reprieve, although mediators later stated that Iran had not requested a 10-day pause and is yet to deliver its final response to the US's 15-point plan to end the war.

EUR/USD: +0.1%

• Trades rangebound following recent softening as geopolitics continued to dictate price action, while ECB's Lagarde warned that Europe is facing a real shock and that markets are maybe optimistic.

GBP/USD: +0.1%

• Rebounded off the prior day's lows but remained confined within tight parameters at 1.3300 handle, while there was little reaction to recent comments from BoE's Taylor, who currently sees a high bar to hiking and said the UK faces low risks of inflation becoming unanchored given the weakening labour market and slowing wage growth.

USD/JPY: -0.1%

• Slightly pulled back overnight following recent advances to the 159.00 level, and with some mild headwinds seen following comments from Japanese Finance Minister Katayama, who said they will hold a G7 Finance Ministers' online meeting and will take decisive steps on forex.

Antipodeans: AUD/USD +0.1% / NZD/USD +0.2%

• Attempted to rebound overnight, but with the upside limited amid the mostly subdued risk appetite and absence of tier-1 data.