[MARKET ANALYSIS] DXY slightly softer as extended long positions limit the upside in the USD

DXY continues to trade on the softer side, trading at the lower end of its 100.94-101.04 range. Price action on Wednesday was puzzling, with the index closing lower despite the higher energy prices. With the most recent CFTC figures showing aggregate dollar long increasing to its highest amount in over a decade, further upside in the USD may be limited.
EUR and GBP trade rangebound in their respective 1.1417-1.1430 and 1.3386-1.3404 range. A light docket ahead for both regions, with the EUR just awaiting June’s ECB minutes.
USD/JPY slips below the 162.50 handle and finds resistance at the key level. JPY is the weakest currency on a weekly timeframe, and without any intervention by the MoF or hikes by the BoJ, further weakness is set to continue.
Antipodeans mixed, with the Kiwi the clear G10 outperformer as gains continues following the RBNZ rate hike on Wednesday.
CNH is slightly firmer against the dollar, despite a broadly cooler inflation print. Headline inflation Y/Y printed at 1.0% (exp. 1.1%, prev. 1.2%). However, as expected, PPI continued to accelerate as it rose to 4.1% from 3.9%