[MARKET ANALYSIS] FX trade is uneventful amid thinned conditions and a lack of major catalysts

DXY: Flat

• Pauses overnight after it recently extended on the hawkish FOMC momentum, despite yields across the curve seeing a modest pullback. Meanwhile, newsflow was relatively light surrounding geopolitics and trade, with oil prices rangebound amid a potential delay in technical talks between US and Iran in Switzerland.

EUR/USD: Flat

• Trades little changed and languishes beneath the 1.1500 handle after weakening against the dollar yesterday, despite comments from ECB officials continuing to toe the hawkish line.

GBP/USD: Flat

• Price action is choppy but off today's worst levels after rebounding from a brief dip into sub-1.3200 territory. The focus overnight was on the Makerfield by-election, which Andy Burnham won convincingly, paving the way for his return to parliament and leadership challenge, while Retail Sales data for the UK looms.

USD/JPY: Flat

• Conforms to the uneventful overnight mood across the FX space following mostly in-line Japanese inflation data, although there was some volatility seen during US trade, in which the pair suddenly dropped from near the 162.00 level despite no obvious catalysts, which spurred speculation of intervention.

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

• Lacked direction following recent declines against the dollar, with price action also not helped by the absence of any pertinent data overnight and holiday closures across Greater China.