[MARKET ANALYSIS] DXY is marginally softer amid lower oil prices and with Trump facing increasing backlash for his diesel import deal with Russia

DXY: -0.1% Marginally softens amid the retreat in oil prices but with price action contained following a lack of FX moving catalysts over the weekend as geopolitical headlines dominated newsflow, while US President Trump faces increasing backlash following his deal with Russian President Putin to import Russian diesel, which Republican Senator Tillis warned may be illegal and could put American lives at risk. Furthermore, the dollar is also not helped by strength in some Asian currencies including KRW, which is around its best level against the dollar since 2024, while INR is also firmer after the RBI ramped up its support of the rupee and unveiled tough curbs on dollar demand to defend its currency. EUR/USD: +0.1% Marginally gained and reclaimed the 1.1200 handle but with upside limited by a lack of major pertinent drivers and with EU leaders to discuss a scaled-back budget at their meeting in Brussels this week. GBP/USD: Flat Lack conviction after stalling around the 1.3250 level, while reports noted that UK Chancellor Healey plans short-term Budget giveaways to limit fiscal pressure and ruled out lowering the mansion tax threshold to GBP 1.5mln. USD/JPY: Flat Trades little changed and remains at the 158.00 handle in the absence of Japanese participants. Antipodeans: AUD/USD Flat / NZD/USD Flat Conforms to the quiet trade across the FX space amid the mixed risk appetite and lack of data releases.