[MARKET ANALYSIS] DXY was choppy following the mixed headlines regarding US-Iran talks in Switzerland

DXY: +0.1%

• DXY is rangebound with price action choppy following the conflicting geopolitical headlines, as there were initial reports that the Iranian delegation halted talks in Switzerland in protest of US President Trump's renewed threats to resume bombing on Iran, although reports later noted that progress was made in talks and that technical discussions will continue for the rest of the week. Elsewhere, there was very little relevant news for the US outside of geopolitics, although WSJ reported that major investors warned Fed Chair Warsh’s push to axe the Fed’s guidance on the direction of monetary policy could increase volatility in the Treasury market and drive borrowing costs higher.

EUR/USD: Flat

• Traded sideways beneath the 1.1500 handle with little fresh drivers for the bloc, while the single currency is also not helped by the escalating spat between US President Trump and Italian PM Meloni.

GBP/USD: -0.1%

• Briefly dipped back below the 1.3200 level amid political uncertainty regarding UK PM Starmer's future, with some reports noting that he could resign as early as Monday, while a government source stated the PM remained focused on getting on with the job.

USD/JPY: +0.2%

• Resumed its upward momentum with a firmer footing at the 161.00 territory, while Japanese Finance Minister Katayama said they are ready to act suitably on currency fluctuations whenever necessary, but declined to comment on particular forex rates.

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

• Price action is contained amid the mixed risk appetite and a quiet calendar to start the week.