US FX WRAP: Dollar little changed to star the week; JPY weighed by rising US yields on firmer oil prices

USD was little changed, with trading ranges quiet to start the week. Updates were centred around geopolitics, which resulted in higher crude prices. The main takeaway was a senior Iranian official speaking to Reuters, noting that they are moving policy to the offensive, now shifting towards making their own deadlines, leaving a few weeks for the implementation of the MoU by the US. Ahead this week, focus will also be on the FOMC Minutes taken from the 9-3 hold meeting in July.

AUD, NZD, and CHF strengthened vs USD to start the week; meanwhile, JPY was slightly weaker as rising US yields amid upward inflationary risks pressured the carry trade, leaving USD/JPY firmer at 159.52.

USD/CAD saw a muted reaction towards the slightly hotter-than-expected Canada CPI report. In July, Headline Y/Y rose 3.0% (Exp. 2.9%), 0.5% M/M (exp. 0.4%), with the BoC CPI Averages rising 2.2% Y/Y (prev. 2.1%). USD/CAD is currently flat around 1.3875.