[MARKET ANALYSIS] DXY marginally softened in quiet overnight trade after holding up yesterday despite softer PPI data

DXY: -0.1% Marginally softened overnight but ultimately held up against its major peers yesterday despite a decline in 2yr yields as the softer-than-expected PPI data spurred further bets for the Fed to remain on hold in September. There were also several comments from Fed speakers, but did little to shift the dial as Hammack reiterated calls for rate hikes and Barkin remained uncertain on the future path of policy, while Goolsbee stated they have been getting a little bit better readings on inflation, which he hopes will continue. EUR/USD: +0.1% Eked slight gains but is confined within tight parameters amid quiet macro drivers and with participants awaiting looming data including the latest EU Employment and GDP figures. GBP/USD: Flat Lacks direction after its recent choppy performance and failure to sustain a brief reclaim of the 1.3500 level despite the recent stronger-than-expected GDP. USD/JPY: Flat Trades steadily overnight in the absence of any tier-1 data releases and following the recent bounce off support around the 159.00 level, while there were some comments from Japan's former top FX diplomat Furusawa, who said the BoJ likely wants to eventually raise rates to around 1.50%-1.75%, and that US-Japan coordinated action in the FX market could occur again if the yen returns to pre-intervention levels. Antipodeans: AUD/USD Flat / NZD/USD +0.2% Somewhat mixed price action as AUD/USD is little changed and NZD/USD continues its rebound from the lows seen following yesterday's softer inflation expectations.