[MARKET ANALYSIS] Dollar softens amid trade uncertainty after SCOTUS struck down Trump's IEEPA tariffs

DXY: -0.4%

• DXY is softer to start the week after the Supreme Court struck down IEEPA tariffs on Friday and with trade uncertainty given US President Trump's response to impose a global tariff of a flat-rate, which has since increased to 15% from the initial 10% announcement, while there is also uncertainty regarding tariff refunds as President Trump noted on Friday that refunds are unclear and may face years of litigation.

EUR/USD: +0.4%

• Reclaimed the 1.1800 status amid the softer dollar and with German Chancellor Merz anticipating the SCOTUS ruling to lower the tariff burden on the German economy, while French Trade Minister Forissier said he is in talks with EU counterparts regarding tariffs and that the EU has the tools to retaliate.

GBP/USD: +0.3%

• Gradually edges higher after returning to 1.3500 territory, but with further upside limited as the UK is seen to potentially be among the countries negatively impacted by recent US tariff developments, given that the UK had previously negotiated a 10% tariff deal with the US.

USD/JPY: -0.5%

• Retreated beneath the 155.00 level amid the softer dollar and with a lack of support owing to the absence of Japanese participants for the Emperor's Birthday, while there were also recent comments from Japan's ruling LDP tax chief Onodera, who described the US tariff situation as a real mess.

Antipodeans: AUD/USD -0.1% / NZD/USD +0.2%

• Antipodeans are somewhat varied in range-bound trade amid the mixed price action in the commodities complex and as markets reflect on recent tariff developments.

The dollar's decline follows the Supreme Court's decision to strike down Trump's IEEPA tariffs, creating significant trade uncertainties. This backdrop has allowed currencies like the euro and pound to gain ground as markets speculate on potential impacts on European economies and possible retaliatory measures from the EU. The ongoing tariff confusion could further complicate the US' trade relationships, influencing market sentiment across various asset classes.