[MARKET ANALYSIS] Marginally rebounded in quiet FX trade and after retreating on hopes for a Middle East resolution

DXY: +0.1%

• Attempts to rebound after retreating in late US trade on reports that the US is working on a 1-month ceasefire and sent its 15-point plan to Iran on ending the Middle East conflict. However, FX price action is rangebound overnight amid few fresh catalysts and after Fed speakers provided very little to shift the dial, with Barr anticipating rates to hold steady for some time, while Goolsbee said he doesn't know if they can cut rates again and that it depends on how long the war will last.

EUR/USD: Flat

• Lacks conviction and looks to retest the 1.1600 level to the downside amid the choppy mood seen so far this week, as trade largely remains driven by geopolitical headlines, while ECB officials recently signalled higher prices and vigilance regarding second-round effects.

GBP/USD: -0.1%

• Pared some its mild gains and reverted to near the 1.3400 focal point, with a lack of conviction ahead of the latest UK inflation data.

USD/JPY: +0.1%

• Marginally rebounded as the dollar regains composure, but with price action contained by a quiet calendar and stale BoJ minutes from the January meeting.

Antipodeans: AUD/USD -0.2% / NZD/USD -0.1%

• Marginally softened with AUD/USD pulling back from resistance at the 0.7000 level in the aftermath of the slightly softer-than-expected Australian monthly inflation data.