[MARKET ANALYSIS] DXY eked slight gains in rangebound trade amid a lack of catalysts outside of geopolitics

DXY: +0.1% Ekes slight gains but with the upside limited in rangebound trade amid a lack of major fresh catalysts and following the prior day's losses, while the attention remains on geopolitics after US President Trump's threat to hit Iran hard following the latter's retaliation to the first US strikes in a month. EUR/USD: -0.1% Marginally pulled back after the single currency recently benefitted from the softer dollar and reclaimed the 1.1600 handle, while participants now await EU PMIs and inflation data. GBP/USD: -0.1% Lacks firm direction with price action contained following the recent bank holiday closure, while there was little reaction to the acceleration in UK shop price inflation, and to reports that PM Burnham will tell MPs that bringing essential services such as water, energy and transport under greater public control is key to boosting economic growth and cutting household costs. USD/JPY: +0.1% Trades rangebound but with a firm footing at the 159.00 handle, with the Japanese currency nearing intervention watch levels, while Japanese Finance Minister Katayama held a bilateral meeting with US Treasury Secretary Bessent and discussed how smooth forex moves are crucial for US and global markets, as well as shared an understanding with Bessent on the significance of joint FX intervention. Antipodeans: AUD/USD +0.1% / NZD/USD -0.1% Price action is mixed and somewhat choppy, albeit within tight parameters, with little reaction seen to the slightly better-than-expected Australian data heading into tomorrow's GDP numbers, and with the RBNZ widely expected to deliver a back-to-back hike at its meeting tomorrow.