[MARKET ANALYSIS] DXY is stuck near the prior day's trough after slipping on Waller comments and with all attention turning to the NFP report

DXY: Flat Price action is choppy overnight and stuck within tight parameters near the prior day's trough after slipping beneath the 99.00 level as yields declined in reaction to comments from Fed's Waller, who kept a September rate hold in play. Waller said he would support holding rates steady if August inflation data shows continued progress and noted little cost of waiting a meeting, but would consider a hike if inflation is hot, while participants now look to the key US jobs data to gauge the health of the labour market, the economy and potential clues on Fed policy. EUR/USD: Flat Holds on to recent gains after it benefited from the dollar weakness and returned to the 1.1600 handle, while the single currency was unfazed by reports that ECB hawk Schnabel could leave her role at the ECB before her term ends to move to the IMF. GBP/USD: +0.1% Marginally extended on advances after returning to above the 1.3500 level following comments from Fed's Waller, while BoE's Pill also explained why he supported raising the bank rate to 4% in recent MPC meetings. USD/JPY: +0.2% Nurses some losses after sliding as the yen outperformed due to intervention risks and hawkish BoJ rate hike bets, while Household Spending data disappointed and a source report noted that the BoJ is favouring a 25bps hike and a flexible future pace. Antipodeans: AUD/USD +0.1% / NZD/USD +0.3% Remained firmer amid the dollar weakness, positive risk sentiment and commodity gains.