On Friday, China immediately responded after President Donald Trump slapped tariffs on $50 billion of imports, putting an additional 25 percent levy on $34 billion of US agricultural and auto exports starting July 6.

Oil tumbled below $64 initially, after Saudi and Russia signaled global output would continue to rise while the US-China suggested Chinese demand could decline.

Copper has slipped for the second straight session and is at USD 6,997/tonne hovering just above 2 week lows as supply concerns continue to ease.

EUR/GBP: As noted, the major laggards as Eur/Usd remains capped ahead of 1.1600, while Cable is retreating towards 1.3200 amidst ongoing Brexit jitters and ahead of this week's BoE policy meeting that is widely if not unanimously expected to see the MPC stand pat again and signal no urgency to normalise policy further.

Looking at the day ahead, the most significant event today is the start of the ECB's Forum on Central Banking in Sintra (continuing until Wednesday), with President Draghi due to make opening remarks in the evening.

Categories: ZH