[MARKET ANALYSIS] DXY is slightly firmer but with gains capped amid trade uncertainty and a mixed performance of its major counterparts

DXY: +0.1%

• DXY is mildly firmer although gains are capped amid the mixed performances of the dollar's major counterparts and with ongoing trade uncertainty as President Trump is reportedly considering new national security tariffs, in which new levies on a half-dozen industries would be issued separately from the new global 15% flat-rate tariff, while he also previously warned a much higher tariff on any country that wants to "play games" with the SCOTUS decision. Nonetheless, the price action is contained as participants await a slew of data releases and Fed speak on Tuesday, as well as President Trump's State of the Union Address, where he is said to promote the economy and unveil new measures to lower costs ahead of midterm elections.

EUR/USD: Flat

• Lacks direction after it faded most of the prior day's initial gains and failed to sustain the 1.1800 handle, with the single currency not helped by trade frictions, with the EU said to warn the US that the new tariff policy breaks the trade agreement, while it also postponed ratifying the trade deal amid the tariff disarray. Furthermore, there were comments from ECB's Lagarde, but did little to shift the dial as she reiterated that inflation and policy are in a good place, and that the ECB will decide policy meeting-by-meeting.

GBP/USD: +0.1%

• Ekes slight gains in rangebound trade near the 1.3500 focal point in the absence of any major UK catalysts.

USD/JPY: +0.2%

• Edged higher and briefly reclaimed the 155.00 handle amid the positive sentiment in Japan on return from the long weekend and with tailwinds in the dollar following the PBoC's surprise weakening of the CNY fix.

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

• Antipodeans are in the green following recent upside in metal prices and with a mostly constructive mood in Asia.

The DXY's mild uptick suggests a cautious market sentiment as trade uncertainties loom, particularly with President Trump's potential new tariffs. This situation creates a mixed landscape for major currencies, as investors await key data releases and Fed commentary, making any significant directional moves unlikely in the near term.