US FX WRAP: Dollar sees slight losses as Kiwi continues to outperform

The Dollar was lower against most G10 FX peers as price action was dominated by broader macro sentiment and geopolitical developments, as opposed to anything Dollar related. On the day, there was little reaction to comments from Fed's Williams or initial jobless claims, which were more-or-less unchanged M/M. As such, US/Iran rhetoric dominated the tape and will continue to be in focus with attention on any further escalation or updates overnight. 

All G10 FX, ex-CAD, was firmer vs. the Greenback, with the Kiwi the clear outperformer and continuing to climb post-RBNZ hawkish hike. The Loonie was the relative underperformer and weighed on by lower oil prices. 

GBP, AUD, JPY, EUR, and CHF all saw similar strength, albeit in thin currency specific newsflow. For the Pound, BoE Chief Economist Pill said interest rates may need to increase this year to keep rising prices under control, while for the EUR, ECB Minutes were a non-event.

In EMFX, Yuan saw no reaction despite the cooler-than-expected CPI print. For the PLN, NBP Governor Glapinski said level of rates is appropriate and think a rate cut this year is likely, and is "maybe" the only MPC member that is thinking of one 25bps cut this year. Lastly, Banxico Minutes were a non-event, as members considered balance of risks for trajectory of inflation within forecast horizon remains biased to the upside, and estimates it will be appropriate to maintain reference rate at current level.