Softer risk tones prevailed across the financial markets on Monday, as the Asian equity markets slipped on decreased odds of aggressive Fed rate cuts following the Non-Farm Payrolls surprise last Friday.

The US dollar consolidated the post-NFP upsurge, leaving most majors in a thin trading range. However, USD/JPY reversed from highs near 108.58 and fell to 108.30 levels amid fresh weakness in Treasury yields on escalating US-Iran geopolitical tensions and increased nervousness ahead of the US-China trade talks. Both EUR/USD and GBP/USD looked to stabilize heading into a big week ahead.

A data-light calendar extends into Monday’s European session. The German Industrial Production and Trade figures released at 06:00 GMT didn’t offer any fresh incentives to the EUR traders. Later at 08:30 GMT, the Eurozone Sentix Investors’ Confidence gauge for July will be released, which is expected to arrive at 0.0 vs. June’s -3.3.

Meanwhile, both the US and UK docket remain data-empty and hence, the attention shifts towards key US macro releases, the Fed Chair Powell’s testimony and the FOMC June meeting’s minutes due on the cards later this week.

Apart from the macro events, the developments surrounding the US-China trade talks, Iranian geopolitical tensions and UK political scenario will continue to grab attention for fresh trading impetus.

Amid risk-aversion, gold futures managed to regain the $1,400 mark while both crude benchmarks stalled their recent advances. Traders remained cautious ahead of a congressional testimony by Federal Reserve Chairman Jerome Powell later this week.