[MARKET ANALYSIS] DXY softens in risk-on trade amid lower oil prices and yields, following the US-Iran interim peace deal announcement

DXY: -0.2%

• Dollar was pressured amid the broad risk-on environment owing to the US-Iran interim peace agreement, while the lower oil prices dragged yields lower and unwound Fed rate hike bets. However, the downside in the dollar is somewhat cushioned ahead of this week's busy schedule of central bank announcements including from the BoJ, RBA, Fed and BoE, while questions remain on how a final deal will be reached during the 60-day period for negotiations amid differing views between the sides regarding an unconditional fund release for Iran and with Trump also warning that the US would resume Iran strikes if it can't reach a nuclear accord.

EUR/USD: +0.3%

• Gained on the back of a weaker dollar and briefly reclaimed the 1.1600 status, while there were hawkish comments over the weekend from ECB's Nagel that prices are likely to stay elevated for longer even if the Iran conflict ends soon.

GBP/USD: +0.2%

• Strengthened at the start of trade but is off today's best levels with participants awaiting key events later in the week, including the BoE rate decision and the Makerfield by-election, where Manchester Mayor Andy Burnham is seeking a return to parliament, which would make him eligible for a leadership bid.

USD/JPY: Flat

• Initially dropped beneath the 160.00 but then gradually rebounded and returned to flat territory amid a lack of data releases for Japan and as the BoJ kick-starts its 2-day policy meeting, with a 25bps hike widely seen to be on the cards.

Antipodeans: AUD/USD +0.5% / NZD/USD +0.3%

• Benefitted from the heightened risk appetite and with upside in metal prices, while participants also await tomorrow's RBA meeting, where the central bank is likely to pause after three consecutive rate hikes, but continue to deliver a hawkish tone.