[MARKET ANALYSIS] DXY remains afloat but with upside capped after recent mixed data and flip-flopping regarding US-Iran talks

DXY: +0.1%

• Kept afloat following yesterday's mild gains, but with the upside limited following mixed data releases stateside and with plenty of focus on geopolitics amid reports that US-Iran talks scheduled for Friday were off, and on again.

EUR/USD: -0.1%

• Marginally softened with the single currency not helped by the weaker-than-expected EU services PMI data and softer core inflation, while participants await the ECB on Thursday.

GBP/USD: -0.1%

• Trickled lower with very few catalysts for the UK ahead of the BoE policy announcement, while Services PMI data missed estimates and reports noted that PM Starmer is to conduct a reshuffle and 'reset' in a bid to save his premiership.

USD/JPY: Flat

• Takes a breather after climbing to just shy of the 157.00 handle with yen weakness persisting throughout the week ahead of the snap elections on Sunday.

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

• Remained lacklustre amid headwinds from the subdued risk appetite and selling pressure in the commodities complex.

The DXY's slight rise is being tempered by mixed economic data and geopolitical uncertainties surrounding US-Iran talks, which creates uncertainty in the USD's trajectory. Weaker data points, particularly from the EU and the UK, add to pressure on their respective currencies ahead of crucial central bank decisions, potentially complicating the outlook for global markets and influencing the Fed's policy decisions.