[MARKET ANALYSIS] DXY remains afloat after gaining on higher global bond yields amid inflationary concerns and the geopolitical backdrop

DXY: +0.1%

• Remains afloat after the dollar gained against its major peers yesterday as global government bond yields continued to march higher amid inflationary concerns and the ongoing geopolitical backdrop, with US President Trump suggesting a 2-3 day timeline on Iran, or "maybe till early next week", and it was also reported that Iran's position in talks with the US to end the war hasn't changed much from earlier iterations that failed to yield progress towards a deal. Participants now look ahead to FOMC Minutes and NVIDIA earnings, while there were recent comments from Fed's Paulson who said that inflation remains too high and interest rate cuts may only happen after inflation is controlled, as well as stated that current policy is appropriate and that it is healthy for markets to consider extended hold or hike.

EUR/USD: -0.1%

• Remains subdued after gradually retreating throughout the prior day amid a firmer buck to breach 1.1600 to the downside, with little help in the single currency from comments from ECB Nagel, who stated the ECB is moving away from the baseline scenario, and will take the next rate decision based on data in June.

GBP/USD: -0.1%

• Trickled beneath the 1.3400 handle in a somewhat choppy fashion following somewhat mixed employment and average earnings data, while the latest UK inflation figures are scheduled for today.

USD/JPY: Flat

• Trades indecisively at the 159.00 focal point in the absence of any key data releases overnight and with participants mindful of increased intervention risks amid the nearby, critical 160.00 threshold.

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

• Price action is constrained amid the downbeat risk sentiment and sparse overnight data calendar.