[MARKET ANALYSIS] DXY strengthens amid a geopolitical flare up and higher oil prices

DXY: +0.1%

• Mildly strengthens as a rebound in oil prices and the negative risk appetite provides some tailwinds for the greenback, but with gains contained after yesterday's ultimately flat performance and with a slew of data releases ahead, including the Fed's preferred Core PCE inflation gauge. There were also several Fed comments, including from Cook, Jefferson, Kashkari and Goolsbee, but they did little to shift the dial, with Cook stating that the right course of action is to hold rates steady, while Jefferson said he has not prejudged the outcome of the June FOMC meeting and that monetary policy is well-positioned to respond to the economy.

EUR/USD: -0.2%

• Gave up some ground and tested the 1.1600 level to the downside amid the firmer dollar and energy-related headwinds, while participants look ahead to incoming ECB Minutes.

GBP/USD: -0.2%

• Trickled lower to return to sub-1.3400 territory with little catalysts from the UK to support the pound, while the UK energy regulator also recently announced a 13% increase in the energy price cap.

USD/JPY: +0.1%

• Takes a breather after gaining a firmer footing above the 159.00 level, with price action contained overnight amid a lack of tier-1 data from Japan and with some intervention risks stoked as the psychological 160.00 level nears.

Antipodeans: AUD/USD -0.4% / NZD/USD -0.2%

• Marginally weakened amid the downbeat mood as geopolitical tensions in the Middle East flared following tit-for-tat strikes between the US and Iran.