[MARKET ANALYSIS] DXY lacks firm direction following recent indecision and mixed geopolitical headlines

DXY: -0.1%

• Lacks firm direction following yesterday's indecisive performance amid mixed geopolitical headlines, including regarding a potential 2-week extension to the current US-Iran ceasefire and suggestions that an Israel-Lebanon ceasefire could occur soon. Nonetheless, there haven't been any changes to the status quo, although betting markets are increasingly convinced of a permanent peace deal by the end of H1, while the latest Fed Beige Book and rhetoric from Fed officials did little to shift the dial, with Musalem noting that rates could be on hold for some time.

EUR/USD: +0.2%

• Eked mild gains after returning to the 1.1800 handle and following a slew of ECB rhetoric, including suggestions of a lack of clarity for April, with sources noting that policymakers are wary of an April rate hike as there is no evidence yet of second-round inflation effects.

GBP/USD: +0.2%

• Gradually edged higher but remains contained within tight parameters as participants look ahead to monthly GDP, as well as Industrial and Manufacturing Production data from the UK.

USD/JPY: -0.1%

• Trickled lower in a slight pullback from the 159.00 territory, and with a lack of tier-1 data from Japan.

Antipodeans: AUD/USD +0.3% / NZD/USD +0.1%

• Remain afloat with AUD/USD eventually supported by mixed jobs data from Australia, in which the headline Employment Change missed expectations at 17.9k (exp. 20.0k) and the Unemployment Rate was unchanged at 4.3%, but with the jobs increase solely fuelled by an increase of 52.5k full-time jobs.