[MARKET ANALYSIS] DXY takes a breather after hitting fresh YTD highs yesterday as oil prices and yields climbed

DXY: Flat

• Trades rangebound after printing fresh YTD highs yesterday as yields climbed for a third consecutive day and Brent returned to above the USD 100/bbl level, with Iran's Supreme leader advocating for the Strait of Hormuz to remain closed. The inflationary concerns spurred a further unwinding of Fed rate cut bets, and money markets are no longer fully pricing in a cut by year-end, while the attention turns to incoming data with the Fed's preferred PCE metric due later.

EUR/USD: Flat

• Languishes around this week's trough after sliding to near the 1.1500 level after recent dollar strength, energy disruption concerns and light EU newsflow.

GBP/USD: +0.1%

• Regains some composure, but with the recovery limited heading into the monthly UK GDP and industrial output data.

USD/JPY: Flat

• Price action is choppy overnight, but with support seen at the 159.00 level and after recently coat-tailing on firmer US yields and higher oil prices.

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

• Conforms to the uneventful price action across the FX space amid a quiet calendar and overall tentative mood