[MARKET ANALYSIS] DXY ekes mild gains amid higher oil prices

DXY: +0.1%

• Marginally strengthened amid higher oil prices but with gains capped following yesterday's mixed performance against G10 peers and alongside the positive risk environment, while the latest Fed rhetoric did little to shift the dial with Fed Chair Warsh telling staff that he will conduct clear-eyed discussions about reform, while upholding the best of the Fed's traditions.

EUR/USD: Flat

• Traded flat after the limited reaction in the single currency to yesterday's Eurozone inflation numbers, as a rate hike by the ECB this month remains almost fully priced in.

GBP/USD: Flat

• Price action is rangebound amid the relatively quiet data calendar for the UK this week, while BoE rhetoric did little to shift the dial, with Governor Bailey stating that policymakers were facing a trade-off between growth and inflation and that the Middle East conflict entirely explained the inflation overshoot, as well as noted that the outlook was for slower growth rather than a recession.

USD/JPY: Flat

• Returned to flat territory after briefly reapproaching within a whisker of the 160.00 level, while Japanese Finance Minister Katayama reiterated they are prepared to respond appropriately on forex as needed, and continued to refrain from commenting on specific FX levels.

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

• Antipodeans are mixed with AUD/USD only briefly pressured in the aftermath of disappointing GDP data, which was then followed by the better-than-expected Chinese RatingDog Services PMI data.