[MARKET ANALYSIS] DXY strengthened on a haven bid

DXY: +0.7%

• Dollar surged on a haven bid with the market spooked after the Iran conflict entered its second week and oil prices surged to print just shy of USD 120/bbl. The conflict continued to show no signs of abating after President Trump announced that Iran would be hit very hard on Saturday, and he was also said to be considering the option of deploying special forces on the ground in Iran. Furthermore, Iran continued to conduct strikes against Gulf neighbours despite the Iranian President instructing forces not to, while Iran also named Ali Khamenei's son, Mojtaba Khamenei, as the new Supreme Leader, who is seen as a hardliner and who the IRGC vowed to obey.

EUR/USD: -0.8%

• Retreated beneath the 1.1600 level amid the firmer buck and as energy-related disruptions roiled global markets.

GBP/USD: -0.8%

• Weakened and briefly dipped to sub-1.3300 territory, with the pair also not helped by Trump's recent criticism against the UK for the lack of support in Iran strikes, while Trump said that the US does not need UK aircraft carriers but will remember.

USD/JPY: +0.6%

• Climbed higher after gapping above the 158.00 level as the dollar reigned supreme, while firmer-than-expected wage data and higher in Japan did little to stem the losses in the Japanese currency.

Antipodeans: AUD/USD -0.5% / NZD/USD -0.4%

• Gave up ground to the firmer dollar but with downside cushioned following firmer-than-expected Chinese inflation data, and as the oil-related inflationary pressure adds to the hawkish central bank outlooks.