[MARKET ANALYSIS] DXY pauses after gaining on several factors including higher yields, strong data and hawkish Fed speak

DXY: Flat Pauses overnight after gaining yesterday alongside sharp rises in global yields, stronger-than-expected US data, and growing economic pressure for Europe and APAC FX if the US goes ahead with a US diesel export ban, while further Fed speak pointed towards another hike, with Governor Barr noting that further rate hikes are likely needed to ensure a timely return to the 2% inflation target. EUR/USD: Flat Lingers near a monthly low following its recent slide beneath the 1.1400 handle and following recent comments from ECB officials that noted there was no major wage response, nor second-round effects from the energy shock. GBP/USD: Flat Lacks demand after slumping to sub-1.3300 territory alongside the prior day's underperformance in cyclical currencies and with headwinds following the reports of a potential US diesel export ban. USD/JPY: -0.2% Pulled back beneath the 158.00 level overnight as Japanese participants returned to the market for the first time this week and with Japanese yields rising across the curve. Antipodeans: AUD/USD Flat / NZD/USD +0.1% Price action is range-bound following recent underperformance and with AUD/USD indecisive after mixed jobs data in which headline Employment Change topped forecast, but was solely due to part-time work, while the Unemployment Rate slightly increased to its highest in around 5 years and coincided with a higher Participation Rate.