[MARKET ANALYSIS] DXY faded the early gains as oil reversed course amid mixed geopolitical headlines

DXY: -0.1%

• Initially strengthened alongside the advances in oil prices at the reopening as markets reacted to US President Trump's threats to destroy Iran's power plants and bridges if it doesn't open up the Strait of Hormuz by a Tuesday evening deadline. However, the dollar then faded the gains and returned to flat territory as participants also reflected on other headlines, including reports of more ships passing through the Strait and Iran exempting Iraq from shipping restrictions. Furthermore, Trump claimed the US is in deep negotiations with Iran and that a deal could be reached before his deadline, while Axios noted that mediators are said to make a last-ditch push for a 45-day ceasefire.

EUR/USD: +0.1%

• Clawed back early losses and returned to flat territory, but with price action kept to within tight parameters, with European markets closed on Monday for the Easter holiday.

GBP/USD: +0.2%

• Eked mild gains and reclaimed the 1.3200 status as risk sentiment gradually improved, while it was also reported that the UK government is to back down on foie gras and fur bans to secure an EU trade deal.

USD/JPY: Flat

• Trades indecisively amid recent oil price swings and a higher yield environment, while price action is also not helped by the lack of pertinent data releases to start the week.

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

• Edged higher as risk sentiment gradually improved from the initial jitters seen following Trump's latest threat against Iran.