[MARKET ANALYSIS] DXY gets some slight reprieve after suffering as oil and yields dropped as Trump halted strikes on Iran and claimed the US ended the war with Iran

DXY: +0.1%

• Gets some mild reprieve after weakening yesterday on President Trump's flip-flopping regarding attacking Iran on what would have been a third consecutive night of strikes, while he cited that discussions with Iran have been brought to the highest level of Iranian leadership and approved. Trump also floated an agreement between the US and Iran would be signed soon, and that the Strait of Hormuz would open as soon as the deal is signed, although an Iranian Foreign Ministry spokesperson said that Iran had not reached a final conclusion about the agreement. Nonetheless, oil prices tumbled, leaving bonds bid as Fed rate hike bets got unwound.

EUR/USD: -0.1%

• Slightly pulled back after climbing on the back of a weaker dollar following Trump's announcements, while the ECB decision was broadly as expected, with a 25bps hike and the expected non-committal guidance and usual language. However, there were conflicting source reports regarding the next meeting in July, as Bloomberg sources noted that ECB officials see the next rate hike as soon as July, while Reuters noted ECB policymakers are eyeing a July pause if energy prices stay where they are and that the ECB would need to see a material surge in crude prices to back a July hike.

GBP/USD: -0.1%

• Takes a breather after recently gaining on the positive risk environment, and with participants now awaiting the incoming monthly GDP and output data releases from the UK.

USD/JPY: +0.2%

• Bounced back from a weekly trough and gradually returned to the 160.00 territory amid little fresh catalysts for Japan and no tier-1 data, while participants lie in wait for next week's BoJ meeting.

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

• Pared some of their recent advances as the dollar regained some composure, but with the pullback limited amid the broad heightened risk appetite.