[MARKET ANALYSIS] DXY is rangebound overnight after mildly gaining yesterday as the focus was on US sanctions on Iran and the US-Canada trade war

DXY: Flat Trades rangebound after mildly gaining yesterday as focus centred on the US announcement of Operation Economic Outcast against Iran, and threatened any further enablers of the Iranian economy, while attention was also on tariffs amid a US-Canada trade war and with Canadian ministers set to announce retaliation against Trump tariffs later today. Elsewhere, there was very little recently in terms of data and Fed speak, although participants won't have to wait long for potential major catalysts as PCE data is due on Wednesday and with the Jackson Hole Symposium to begin the following day. EUR/USD: Flat Remains contained within a tight range at the 1.1600 handle, while recent comments from ECB's Cipollone provided very little incrementally as he stated that monetary policy needs to be well calibrated and that inflation is far from adverse and severe scenarios. GBP/USD: Flat Lacks direction following the prior day's choppy mood amid a lack of major pertinent catalysts for the UK, although there were recent comments from UK PM Burnham, who ruled out a general election this year, but wouldn't rule out tax increases in the Budget. USD/JPY: +0.2% Edged higher after reclaiming the 159.00 handle and as US yields rebounded. Antipodeans: AUD/USD +0.1% / NZD/USD +0.1% Eked out mild gains in rangebound trade and with a muted reaction seen following the RBA Minutes from the August meeting, which noted the Board is ready to increase rates if upside risks materialise and several members judged it is possible upside risks to inflation would crystallise, although others saw offsetting downside risks and time to leave monetary policy unchanged and assess incoming data.