[MARKET ANALYSIS] DXY takes a breather after gaining yesterday in risk-off conditions

DXY: -0.1%

• Slightly softened overnight as it takes a breather after advancing yesterday amid the risk-off mood and higher oil prices, while recent data releases were mostly better-than-expected but took a back seat to the geopolitical headlines. Furthermore, the latest Fed Beige Book and comments from Fed's Logan, who stated she is increasingly concerned higher interest rates could be necessary later this year and that monetary policy is not restraining the economy, did little to spur price action.

EUR/USD: +0.1%

• Rebounded off the prior day's trough and reclaimed the 1.1600 status, but with price action limited amid light newsflow outside of geopolitics, while participants also await Lagarde comments and EU Retail Sales.

GBP/USD: +0.1%

• Attempts to nurse some losses after declining yesterday alongside the weakness in cyclical peers due to the risk-off mood.

USD/JPY: -0.1%

• Pulled back after briefly breaching through the psychological 160.00 level, with intervention risk and rate hike expectations among potential headwinds, while data is light with no tier-1 releases overnight.

Antipodeans: AUD/USD Flat / NZD/USD +0.2%

• Trade rangebound after recent declines and with little impact seen from the latest Australian trade data.