[MARKET ANALYSIS] FX price action is flat after mixed geopolitical headlines and lack of fresh drivers

DXY: Flat

• Dollar trades rangebound following the recent mixed geopolitical headlines, including US President Trump denying reports of a 3-5 day ceasefire timeline, while the US military intercepted at least three Iranian oil tankers in Asian waters and Iran seized two ships in the Strait of Hormuz, citing violations and dangerous navigation. Elsewhere, there were few catalysts for price action outside of geopolitics, with no tier-one data releases on Wednesday and as Fed commentary remained non-existent amid the blackout period.

EUR/USD: Flat

• Remained lacklustre and briefly dipped beneath the 1.1700 level as oil rallied, with the single currency also not helped by weak EU Consumer Confidence and Germany downgrading its GDP forecasts.

GBP/USD: Flat

• Lacks conviction with price action returning to around the 1.3500 level, which has acted as a magnet throughout the week so far, while political turbulence remains as UK Cabinet loyalists were said to have turned on UK PM Starmer in a growing backlash over his handling of the Mandelson scandal.

USD/JPY: Flat

• Trades rangebound amid a lack of drivers and mixed flash PMI data from Japan, although there was some brief upside seen as Japan's currency was pressured from an initial spike higher in oil.

Antipodeans: AUD/USD -0.1% / NZD/USD -0.1%

• Price action is subdued amid the mostly downbeat risk appetite, and with AUD/USD failing to benefit from the encouraging flash Manufacturing and Services PMI data from Australia, which returned to expansionary territory.