Forex Today: Pompeo pumps up the dollar, Trump's trade threats boost the yen, EZ data eyed

Here is what you need to know on Monday, May 4:

Sino-American tensions are weighing on sentiment and boosting the dollar and the yen against the rest, with gold prices also declining. Second-tier US and European figures coronavirus developments and relations between the world's largest economies are eyed.

US President Donald Trump said that China is not buying enough US goods as described by the trade deal and threatened to cancel it. Secretary of State Mike Pompeo said there is "enormous evidence" that coronavirus originated from a lab in Wuhan adding to tensions between both countries. 

Europe: Final Manufacturing Purchasing Managers' Indexes are set to confirm a devastating downfall in activity in April. The Sentix Investor Confidence and EU Economic Forecasts are also of interest. European mortalities have continued declining in Spain and Italy as both countries take baby steps to return to normal on Monday.  EUR/USD has retreated from the highs over 1.10 recorded on Friday. 

UK Prime Minister Boris Johnson is set to push for an international effort to develop a vaccine. His government is set to announce its plans to lift the lockdowns. Britain has ramped up its testing and contact tracing capacity. The number of deaths has declined, yet it is probably due to a "weekend effect." GBP/USD is trading below 1.25, a substantial climbdown from topping 1.26 last week. The Bank of England's decision is eyed this week. 

New Zealand has reported zero new coronavirus cases, in encouraging development. Nevertheless, NZD/USD is on the back foot amid the risk-off atmosphere and the country's elimination approach has taken an economic toll. Japan may extend its state of emergency through the end of May.

Oil prices are consolidating their gains with both WTI and Crude holding above $20. Optimism about easing limits and correction after the downfall are in play. Gold is struggling around $1,700. 

Cryptocurrencies have been extending their descent from the highs, with Bitcoin trading at around $8,500. 

See Market drivers in times of disease, and why bulls should have fear of the dark – Interview with Mário Blaščák

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