[MARKET ANALYSIS] DXY strengthens amid higher oil and firmer yields after Trump's speech dampened Iran war off-ramp hopes

DXY: +0.3%

• Strengthened as risk sentiment soured alongside US President Trump's primetime address, where he outlined successes in the Iran conflict and noted that strategic objectives are nearing completion, but also stated that they will hit Iran very hard over the next 2-3 weeks and will bring it back to the Stone Age.

EUR/USD: -0.3%

• Pulled back from the 1.1600 level as the dollar strengthened alongside the disappointment from Trump's speech, as some were hoping for a possible outline of an off-ramp in the Iran conflict, while the single currency was also not helped by recent ECB rhetoric, including a suggestion that the central bank's adverse scenario is more likely to be the next baseline.

GBP/USD: -0.4%

• Failed to sustain the 1.3300 status amid the downbeat mood and with an ICAEW quarterly survey showing UK business confidence was hit by the Iran war.

USD/JPY: +0.5%

• Returned to 159.00 territory amid the upside in the dollar and with the yen hit by rising oil prices, given Japan's heavy dependency on imported oil from the Middle East.

Antipodeans: AUD/USD -0.6% / NZD/USD -0.5%

• Declined as recent optimism of a near end to the Iran conflict faded due to President Trump's fighting talk and renewed threat to hit Iran's electric plants if no deal is made.