[MARKET ANALYSIS] FX markets are rangebound with the Fed set to kick off this week's major central bank announcements

DXY: +0.1% Kept afloat amid the cautious sentiment and following the recent surge in oil prices and upside in yields, although dollar-specific newsflow remains sparse ahead of the pivotal FOMC decision, where money market pricing is leaning heavily towards a 25bps hike, although such a move is not quite a foregone conclusion. EUR/USD: Flat Lacks direction in the absence of pertinent FX-related catalysts, while reports that France would back former Dutch central bank chief Knot to succeed Lagarde as the next ECB President garnered little reaction. GBP/USD: Flat Trades uneventfully and lingers beneath the 1.3500 handle as participants also await UK inflation data. USD/JPY: +0.2% Continued to edge higher and returned to above the 155.00 level ahead of the key central bank rate decisions beginning with the Fed today, while participants also digest mixed data from Japan and recent comments from Treasury Secretary Bessent, who spoke on a wide range of topics at the House Financial Services Committee hearing and defended yen intervention. Antipodeans: AUD/USD Flat / NZD/USD -0.1% Price action is contained in the absence of relevant tier-1 data and amid the cautious risk appetite.