The risk-off sentiment remained at full steam this Monday, as the US-China trade escalation spooked markets, with traders dumping the risk assets such as the equities, yields, and oil, amid an increased flight to safety. Therefore, the safe-haven currencies such as the Yen benefited across the board, with USD/JPY having hit fresh seven-month lows at 105.80.

The services PMI reports dominate today’s macro calendar on both sides of Atlantic, against the backdrop of the US-China trade tensions and holiday-thinned markets. The Euro area Services PMI readings will start dropping in from 07:15 GMT while the UK Services PMI and Eurozone Sentix Investor Confidence numbers will be reported at 08:30 GMT.

In the NA session, the US Markit Services PMI and ISM non-manufacturing PMI reports will be published at 13:45 GMT and 14:00 GMT respectively. The economic releases could play second fiddle to the US-China trade headlines that are likely to remain the main market driver in the coming days.

Among the commodities, gold hit YTD tops at 1468.05 levels while both crude benchmarks dropped over 1% amid falling Treasury yields and Asian equities.