[MARKET ANALYSIS] FX markets are mostly flat with the dollar taking a breather after recent gains

DXY: FlatLingers near the 101.00 level and takes a breather after beginning the week mostly firmer against G10 peers amid recent gains in yields and despite lower oil prices. There were also some recent comments from Fed's Goolsbee (2027 voter), who said that inflation is well above target and going the wrong way, as well as noted that they need evidence that this inflation is temporary, and that services inflation is a little disturbing, while the data calendar has been light but begins to pick-up today heading closer to Thursday's GDP revisions and PCE data.EUR/USD: FlatPrice action is contained near the prior day's trough after giving up ground to the firmer buck, and with the single currency not helped by somewhat dovish comments from ECB President Lagarde, who stated there is no evidence yet of de-anchoring of inflation expectations or second-round effects that would warrant a more forceful policy response.GBP/USD: FlatTrades sideways after ultimately gaining yesterday as UK assets were bid following Wes Streeting's backing of Andy Burnham to replace PM Starmer, who announced his resignation, while the endorsement significantly reduces the odds of a leadership contest and also potentially sets Streeting up to be Chancellor, an outcome which would be much more welcome than other options, such as Miliband.USD/JPY: FlatStruggles for direction after recent fluctuations and a sharp pullback from near the 162.00 territory, which was attributed to media reports that Japanese Finance Minister Katayama and US Treasury Secretary Bessent held talks and likely discussed the foreign exchange market.Antipodeans: AUD/USD -0.3% / NZD/USD -0.2%Underperformed amid the mixed risk appetite and recent declines in commodity prices.