[MARKET ANALYSIS] DXY remains lacklustre after recently weakening amid Trump's recent tariff threats

DXY: -0.1%

• Remained subdued after weakening yesterday as the continued trade conflict left the de-dollarisation trade intact after US President Trump threatened Canada with 100% tariffs and announced to raise tariffs on South Korean autos, lumber, pharma, and all other reciprocal tariffs to 25% from 15% due to its legislature not yet enacting the US-Korea trade deal. Nonetheless, price action is contained as participants await tomorrow's FOMC and with several data releases scheduled later today, including US Consumer Confidence, Richmond Fed and ADP Weekly Employment Change.

EUR/USD: +0.1%

• Eked marginal gains and reapproached the 1.1900 handle, while newsflow from the bloc is light, although ECB's Lagarde and Nagel are scheduled to provide comments later today.

GBP/USD: +0.2%

• Retested the 1.3700 level to the upside amid a softer dollar, and with the latest UK BRC Shop Price Index showing that major retailer prices rose at the fastest pace in almost two years.

USD/JPY: Flat

• Remains subdued but is off the prior day's trough after bouncing back from a brief dip beneath the 154.00 level, albeit with the recovery limited following the latest Services PPI data in Japan, which slightly softened from prior but remained above the price target.

Antipodeans: AUD/USD +0.1% / NZD/USD 0.0%

• Price action is little changed in the absence of tier-1 data releases and amid the somewhat cautious gains in stocks.