The risk-off sentiment was the underlying theme in Monday’s Asian trading, as the ongoing US-China tensions flared up after US President Donald Trump and Secretary of State Mike Pompeo blamed the Chinese government for intentionally concealing the severity of COVID-19 from the international community in early January. The holiday-thinned trading exaggerated the risk-off moves, especially after Trump said tariffs would be `ultimate punishment’ on China. The US dollar jumped sharply across the board on the revival of the safe-haven demand. Gold, however, failed to benefit amid a stronger greenback and remained depressed below $1700 mark. The Japanese and Chinese traders were away on a national holiday while the rest of Asia traded mixed. The US equity futures dropped 1% while the benchmark 10-year US Treasury yields tanked about 3.50%. Across the fx space, USD/JPY dropped to 106.70 region, with the downside cushioned by broad dollar comeback. AUD/USD hit multi-day lows below 0.6400 while the kiwi was the top loser, down 0.75% but managed to hold above 0.6000. USD/CAD tested 1.4150 amid a 6% drop in oil prices. Among the European currencies, EUR/USD dropped back towards 1.0900 while the cable extended its retreat below 1.2450 amid uncertainty over the UK’s coronavirus situation. Main topics in Asia Gilead CEO: Remdesivir available to coronavirus patients this week, ‘We’ve donated the entire supply’ UK Government lockdown to come under sustained criticism from Conservative MPs – Telegraph US Republican Senate conference want to wait before passing another coronavirus stimulus package – Axios Britain and America will officially launch talks for a major free trade agreement on Tuesday – UK Express US President Donald Trump: “Intelligence has just reported to me that I was correct” on China Pompeo’s anti-China bluff strategy reveals all-or-nothing mentality to fool US voters – GT Trump says tariffs would be the `ultimate punishment’ on China China reports 3 new coronavirus cases, all imported NZD bullish: NZ PM Ardern invited to Australia’s National Cabinet on Tuesday S&P affirms New Zealand’s AA Ratings with outlook – Positive RBNZ: Term lending facility to be available to banks from May 26 Japanese Panel recommends state of emergency extension to May 31 Key focus ahead Monday’s EUR macro calendar is a busy one, with the final Manufacturing PMI reports from the Euro area to headline, followed by the bloc’s Sentix Investor Confidence due at 0830 GMT. The UK docket is data-empty and hence, the virus-related updates and Brexit headlines will keep the GBP traders busy alongside US-China tensions driven dollar dynamics. In the NA session, the US Factory Orders, dropping in at 1400 GMT, will be of note among a couple of minority reports. Meanwhile, coronavirus-related headlines will be also closely followed. EUR/USD: Risk-off threatens to derail three-day winning streak EUR/USD drops as the decline in the US stock futures puts haven bid under a dollar. Risk sentiment takes a hit on rising US-China tensions. Trade war fears return as Trump renews tariffs threat to China. GBP/USD prints losses below 1.2500 as trade sentiment turns heavy GBP/USD extends Friday’s losses amid risk aversion. Broad US dollar strength, amid US-China tussle, challenges to the UK PM Boris Johnson-led government also weigh. A light economic calendar keeps qualitative catalysts in the driver’s seat. Oil Market Special: Has oil bottomed out? Over the short term, if WTI prices can close above $20.27 – a critical inflection point for oil prices, the impact of last week’s historical splat in crude oil prices would be lessened while also boosting sentiment. RBA Preview: Markets looking for forecasts, not action Not much expected from the RBA this week, other themes in play. Geopolitical risk is heating up between the US and Australia. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Asian stock market: Bears cheer Sino-US trade war concerns despite China/Japan off FX Street 2 years The risk-off sentiment was the underlying theme in Monday’s Asian trading, as the ongoing US-China tensions flared up after US President Donald Trump and Secretary of State Mike Pompeo blamed the Chinese government for intentionally concealing the severity of COVID-19 from the international community in early January. The holiday-thinned trading exaggerated the risk-off moves, especially after Trump said tariffs would be `ultimate punishment' on China. The US dollar jumped sharply across the board on the revival of the safe-haven demand. Gold, however, failed to benefit amid a stronger greenback and remained depressed below $1700 mark. 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