[MARKET ANALYSIS] DXY takes a breather after paring some of its post-FOMC spoils, while markets now await the BoJ

DXY: Flat Trades little changed after giving back some of its post-FOMC spoils as yields eased back, with some citing improved Fed credibility as markets appeared to take greater confidence in Chair Warsh's commitment to return inflation to the target. Elsewhere, dollar-specific newsflow remains light despite a slew of US data, which ultimately failed to move the needle, while participants will get to digest rhetoric from Fed speakers following the end of the blackout period. EUR/USD: Flat Trade sideways after an attempt to nurse losses yesterday was thwarted by resistance near the 1.1500 handle, while there were some comments from ECB officials that there were currently no signs of second-round effects of inflation. GBP/USD: Flat Lacks direction after lagging yesterday post-BoE as UK yields eased from their highs after the Bank announced it would pause APF gilt sales until April 2027 and confirmed it would not sell long-dated gilts into the market. USD/JPY: +0.1% Remains underpinned after rebounding from yesterday's trough, with Japan's currency facing headwinds from softer inflation, while participants await a fully priced-in rate hike by the BoJ today. Antipodeans: AUD/USD +0.1% / NZD/USD -0.2% Price action is mixed, with AUD kept afloat amid the mostly positive risk appetite and after CNH hit its strongest level in around four years, while NZD/USD is mildly pressured after slightly weaker New Zealand Exports and Imports data.