[MARKET ANALYSIS] DXy slightly gains amid higher oil prices and cautiousness ahead of Trump's deadline

DXY: +0.1%

• Trades marginally higher as rising oil prices stoked some inflationary concerns, and with cautiousness heading into the Tuesday evening deadline for Iran to open up the Strait of Hormuz or face the risk of the US destroying all its power plants. Furthermore, President Trump said the deadline will not be moved again and that Iran can be taken out in one night, but also said that he thinks talks are going well with Iran and that they would like to be able to make a deal.

EUR/USD: -0.1%

• Continued its gradual pullback after having recently benefitted from the dollar weakness and with currency-specific newsflow light following the holiday closures across Europe, while there were prior comments from ECB’s Stournaras that the appropriate monetary policy response in the Eurozone will depend on the size and nature of the energy shock.

GBP/USD: -0.1%

• Slightly trickled lower to give back some of its recent spoils, although the downside is limited, and price action remains at the 1.3200 handle amid very few catalysts for the UK.

USD/JPY: +0.2%

• Edges higher amid slight gains in the buck and with the yen pressured by higher oil prices, while Household Spending data from Japan disappointed and showed a larger-than-expected Y/Y contraction.

Antipodeans: AUD/USD -0.1% / NZD/USD -0.2%

• Retreated after the prior day's mild cyclical outperformance and as markets turned cautious heading into Trump's deadline on Tuesday evening.