[MARKET ANALYSIS] DXY underperforms as markets shift to safe-haven currencies (CHF, JPY)

DXY saw initial weakness from the start of Asia-Pac trade and fell just shy of 99.00 as US President Trump threatened an additional initial 10% tariff on 8 EU countries.
EUR/USD has seen positive gains amid rising trade tensions with the US, as the pair lifts above 1.16 and holds. This comes as traders shift away from the dollar and into typical havens like CHF and JPY.
GBP/USD has benefited the least, compared to its G7 peers, as cable briefly extends above 1.34 before falling back below.
USD/JPY has seen pressure at the start of the APAC session, as a combination of haven flows and renewed fiscal concerns in Japan weighs on the pair. Reports by the Japanese press said that Takaichi’s LDP and the new opposition party, the Centrist Reform Alliance, are planning to cut/suspend the sales tax. This has lifted bond yields and added to the JPY strength. The pair has given back the majority of its losses but remains below 158.
Antipodeans have risen against the buck, with the Kiwi outperforming its Aussie counterpart, despite a lack of reasoning behind the gains in NZD/USD.
The PBoC set USD/CNY mid-point at 7.0051 vs exp. 6.9689 (prev. 7.0078)