[MARKET ANALYSIS] DXY gets some slight reprieve after weakening against its major peers yesterday

DXY: +0.1%

• Trades marginally firmer and gets some slight reprieve after losing ground to its major peers yesterday, as recent price action across markets was largely driven by mixed geopolitical headlines, although the main development was President Trump's announcement to postpone a strike on Iran that was planned for Tuesday following a request from Middle East allies. Aside from geopolitics, there was little else to spur price action in the dollar as reports that Warsh's confirmation for Fed Chair is set for Friday, and comments from Fed's Goolsbee, were met with a muted reaction.

EUR/USD: -0.1%

• Partially fades Monday's choppy rebound with trade quiet amid very light newsflow from the bloc and with the EU flagging a cut to the growth outlook and an increase in the inflation forecast owing to the Iran war.

GBP/USD: -0.1%

• Mildly pulled back after yesterday's outperformance, which was helped by potential leadership challenger, Andy Burnham, fully ruling out changing Chancellor Reeves’s fiscal rules if he becomes PM, while participants now await UK employment and earnings data.

USD/JPY: +0.1%

• Ekes slight gains but with the upside capped by around the 159.00 level and following recent fluctuations, as well as stronger-than-expected Japanese GDP data.

Antipodeans: AUD/USD -0.4% / NZD/USD -0.3%

• Retreated amid the mixed risk appetite and pressure in the metals complex, while the RBA Minutes from the May meeting noted that the board judged financial conditions would be somewhat restrictive after the May hike and that a hike would provide space to see how the Gulf conflict develops, as well as the response of households and businesses.