[MARKET ANALYSIS] DXY is steady in uneventful overnight FX trade but holds on to recent spoils

DXY: Flat

• Trades little changed during Asia-Pac hours but holds on to the prior day's spoils after predominantly gaining against its peers after benefiting amid the choppy risk sentiment, while there was an abundance of Fed speakers, including Jefferson, who suggested they could take more time to decide the next rate move, as giving more time to consider the data would allow the Fed to make a better decision on rates, while Bowman also sees no urgent need for more rate moves this year. Furthermore, Kashkari said he does not have a strong view on an October rate hike and is open-minded about the pace of further tightening, while Logan said the policy rate needs to increase an additional 50bps or more and that without higher rates, inflation will not get to the 2% goal. In terms of the data, the recent releases were somewhat mixed as the ISM Manufacturing headline missed, but the closely watched Prices component jumped, Initial Claims were little changed, and Challenger layoffs eased slightly in September, while all attention turns to the looming US NFP report.

EUR/USD: Flat

• Price action is constrained after recently underperforming as it gave way to CHF and dollar strength, while the US was said to have warned France and Germany to release emergency diesel stocks or face a possible export ban.

GBP/USD: Flat

• Lingers near a 3-month trough around the 1.3200 level after retreating throughout the prior day, while there was little reaction seen to reports that UK PM Burnham is leaving the door open to a snap general election next year.

USD/JPY: -0.1%

• Trades relatively sideways as participants digest the latest data from Japan, which showed a surprise uptick in the Unemployment Rate and an acceleration in Tokyo-area CPI.

Antipodeans: AUD/USD Flat / NZD/USD Flat

• Conformed to the uneventful overnight trade in the absence of pertinent data and amid the mixed risk appetite.