[MARKET ANALYSIS] DXY regains some composure after recent weakness and bout of mixed geopolitical headlines

DXY: +0.1%

• Regains some composure after the prior day's losses and as focus remained on geopolitical headlines, with initial reports of diplomatic efforts between Israel and Lebanon to allow for a broader ceasefire in the region, were upended after Israeli PM Netanyahu remained firm in his push to strike Hezbollah, while talks between Israel and Lebanon are set to take place next week, although firing continues ahead of discussion. Furthermore, there was a recent slew of data, which ultimately did little to shift the outlook or price action, and it was also reported that the Senate Banking panel is no longer intending to conduct a confirmation hearing for Kevin Warsh next week, with the delay due to his paperwork.

EUR/USD: -0.1%

• Marginally eases back after it recently benefitted from a weaker dollar and briefly returned to 1.1700 territory, but with price action contained amid the lack of major events scheduled on Friday.

GBP/USD: -0.1%

• Trades sideways amid light UK newsflow and with little reaction to the return to growth of UK retail footfall.

USD/JPY: +0.1%

• Holds on to the recently reclaimed 159.00 handle but with further upside capped after the acceleration in Japanese PPI data and with some jawboning from Japanese Finance Minister Katayama, who said the government is prepared to take decisive action in markets, but will not elaborate on future potential measures.

Antipodeans: AUD/USD -0.2% / NZD/USD -0.2%

• Marginally declined amid the weak risk appetite seen on both sides of the Tasman and with a choppy reaction seen to mixed Chinese inflation data.