Markets have kicked off the week with calm as Washington and Beijing put additional tariffs on each other's exports, adding to the gloom hanging over the global economic outlook. The measures were well-telegraphed in advance but manage to create a bigger appetite for safe-haven assets.

The United States slapped 15% tariffs on a variety of Chinese goods on Sunday - including footwear, smart watches and flat-panel televisions - while China imposed new duties on U.S. crude oil.

The US Dollar remains firm as markets have recently been seeking safe-haven in the greenback amid dovish rhetoric from the rest of the world. Euro is trading within a narrow range at the beginning of the week, taking EUR/USD to the 1.0990 region amidst marginal volatility due to the inactivity in US markets.

GBP/USD was flat at 1.2157 as the fallout of Prime Minister Boris Johnson’s decision to suspend Britain's parliament for more than a month started to become apparent while USD/JPY seems to lose upside momentum even if it takes the bids to 106.22 in the European open on Monday.

Final manufacturing PMIs in the euro zone are unlikely to be a market mover, while the focus of attention remains on developments from the US-China protracted trade conflict. The UK Manufacturing PMI will decorate the British economic calendar.

With the US markets off for the Labour Day Holiday, investors will keep an eye over trade and political headlines for fresh impulse.

Oil is taking rounds to $54.75 during the early session on Monday as trade pessimism outweighs geopolitical tension.

Gold rose on Monday by the most in almost a week as investors were drawn to so-called risk-off trades. Declines in Asian shares also showed investors steering away from risk.