[MARKET ANALYSIS] Dollar is marginally higher but with upside capped ahead of key central bank rate decisions this week

DXY: +0.1% Eked slight gains amid higher oil prices and the negative risk tone, although the gains are limited as participants look ahead to this week's key central bank rate decisions beginning with the FOMC mid-week, with money market pricing leaning towards a hike. Furthermore, there were some mixed comments from the administration as US President Trump reiterated that the US should have the lowest interest rates in the world, while White House economic advisor Hassett said they will 100% support what the Fed decides on rates. EUR/USD: -0.1% Marginally softened and lingered beneath the 1.1600 handle, while recent hawkish comments from ECB officials did little to spur the single currency, in which Lagarde stated the current inflation shock is longer-lasting, and ECB's Kocher warned that high oil prices could force the central bank to continue hiking rates. GBP/USD: Flat Trades little changed as participants await UK inflation data on Wednesday and the BoE rate decision on Thursday, with the latter expected to stand pat, while there was quiet weekend newsflow from the UK, although there were relevant comments from US President Trump that he could settle the UK-Argentina dispute regarding the Falklands and that he would love to see Ireland unified. USD/JPY: +0.3% Edged higher and returned to above the 154.00 level amid the upside in oil prices and despite a widely anticipated BoJ rate hike scheduled later in the week. Antipodeans: AUD/USD -0.2% / NZD/USD -0.4% Retreated as risk sentiment was pressured at the start of trade, although it has since mildly improved, while there were also declines seen in metal prices.