[MARKET ANALYSIS] DXY remains subdued in the aftermath of the softer-than-expected CPI data

DXY: -0.2%

• Remains subdued after weakening yesterday in the aftermath of the softer-than-expected CPI data, which resulted in some unwinding of Fed rate hike bets, although Fed Chair Warsh noted that the inflation data did not mean the mission was accomplished and cautioned against overreading or cherry-picking the data, while participants also look ahead to PPI data and more Fed speakers, including Warsh's testimony to the Senate.

EUR/USD: +0.2%

• Benefited from the softer buck and reclaimed the 1.1400 status, while catalysts remained light for the bloc, although there were reports that the EU was set to propose easing banks' capital requirements.

GBP/USD: +0.2%

• Returned to above the 1.3400 level as cyclical currencies are underpinned by the positive risk environment, while the latest comments from BoE Governor Bailey had little impact, in which he noted that the core banking system in the UK was resilient and debt levels were not stretched.

USD/JPY: -0.1%

• Retested the 162.00 level to the downside after US yields retreated post-CPI, but with downside limited amid higher oil prices and disappointing Machinery Orders data from Japan.

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

• Marginally edged higher owing to their high-beta statuses, but with the upside capped as participants also digest mixed Chinese GDP and activity data.