[MARKET ANALYSIS] DXY mildly gains in tandem with higher oil prices and yields, while participants await incoming inflation data, as well as the Trump-Xi summit later this week

DXY: +0.2%

• Mildly strengthens in tandem with higher oil prices and yields, as well as the mixed risk appetite amid geopolitical uncertainty due to the US-Iran impasse, while participants look ahead to the incoming US inflation data scheduled for today and the Trump-Xi summit later this week.

EUR/USD: -0.2%

• Gave up ground amid the firmer buck, but with price action kept to within a relatively tight range at the 1.17 handle amid a lack of major news catalysts from the bloc.

GBP/USD: -0.1%

• Lingers at sub-1.3600 territory after recent fluctuations and political headwinds for UK PM Starmer, who is fighting to hold on to his job after cabinet ministers held talks on his future and dozens of Labour MPs called for him to resign.

USD/JPY: +0.3%

• Gained a firmer footing above the 157.00 level with the Japanese currency pressured by higher oil prices and disappointing Household Spending data. Furthermore, Japanese Finance Minister Katayama said she had a meeting with US Treasury Secretary Bessent and discussed the financial market situation, including forex, while she reaffirmed close cooperation based on the prior accord but refrained from any significant currency jawboning.

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

• Price action is somewhat mixed alongside the flimsy risk sentiment and recent upside in commodities, while Australian NAB Business Surveys were also varied and remained soft.