[MARKET ANALYSIS] USD regains some composure ahead of US CPI data

DXY: +0.1%

• Attempts to recoup some losses ahead of the latest US CPI data and after weakening yesterday alongside the constructive geopolitical backdrop and cooling energy prices amid increased hopes of a US-Iran peace deal, while there was little reaction to the latest Fed comments, including from Barkin, who stated that risk lies on the inflation side of the Fed's mandate and that there is no base case for the December meeting.

EUR/USD: Flat

• Holds on to recent spoils and takes a breather after steadily advancing throughout the prior day to return to above the 1.1200 level, in tandem with a softer buck and with very few fresh drivers for the single currency.

GBP/USD: Flat

• Paused overnight after having reclaimed the 1.3400 status and with comments from BoE Governor Bailey providing very little incrementally, in which he stated that there were growing signs of the beginnings of a positive supply shock from AI and the investment required to support it.

USD/JPY: +0.1%

• Rebounded from a brief dip beneath the 158.00 handle as the dollar regained some composure, and with the partial recovery in the pair facilitated by soft data, including the weaker-than-expected Household Spending data and a narrower current account surplus.

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

• Price action is range-bound after climbing yesterday alongside the positive risk environment, while participants also digest somewhat mixed data releases, including varied consumer and business surveys from Australia, and the somewhat mixed Chinese trade figures.