The US President Trump’s overnight tweet, threatening tariffs hike on the Chinese imports, re-ignited US-China trade tensions and killed the appetite for the riskier and higher-yielding assets across the financial markets this Monday.

As a result, the safe-havens such as the Yen and gold were boosted at the expense of the risky assets. USD/JPY tumbled to the lowest levels in six weeks near 110.25 before recovering to 110.75 levels. Pound faced setbacks from risk-aversion and the renewed Brexit pessimism with GBP/USD dropping back towards the 1.31 handle. EUR/USD traded marginally lower but capped by the 1.1200 mark.

Markets look forward to a relatively busy EUR calendar amid early May Day holiday in the UK. The services PMI reports from the across the Euro area economies started dropping in from 07:15 GMT, with the key German and Eurozone PMI data due at 07:55GMT and 08:00 GMT respectively. The immediate focus will be on the Eurozone Sentix investor confidence due at 08:30 GMT and the bloc’s retail sales report slated for release at 09:00 GMT. The NA session remains data-empty.

Amid a lack of first-tier macro releases, the souring US-China trade talks-related developments will continue to drive the sentiment in light trading ahead.

Oil trades near the five-week low of $60.10 during early Monday on the US President Donald Trump’s tweets that threatened to levy fresh tariffs on China. Adding to the black gold’s weakness could be an increase in the US crude oil rig counts by 2 to 807 for the week ended on May 03.

Renewed US-China trade tensions boost demand for traditional safe-haven assets like Gold, as a result the precious metal built on Friday's post-NFP goodish bounce and opened with a bullish gap at the start of a new trading week. However, a modest US Dollar uptick, which tends to undermine demand for the dollar-denominated commodity, turned out to be the only factor keeping a cap on any further up-move.