USD slides across board as China tensions trigger risk-off sentiment

Major USD pairs experienced significant selling pressure Monday, with EUR/USD climbing 0.7% to 1.0920 and GBP/USD advancing 0.6% to 1.2580. The dollar weakness stems from escalating US-China trade tensions following China's rare earth export restrictions implemented in April. Safe-haven flows dominated as USD/JPY plunged 1.1% to 153.85, breaking below key technical support at 155.00. The Swiss franc outperformed, with USD/CHF dropping 0.8% to 0.9120. Commodity currencies showed mixed performance, with AUD/USD gaining 0.4% despite risk-off conditions, supported by rising gold prices. Market participants await this week's scheduled Trump-Xi call and upcoming US ISM Services data. Technical analysis indicates further dollar weakness likely if the DXY breaks below 104.00 support. Traders should expect continued volatility as geopolitical uncertainties weigh on risk appetite, favoring defensive positioning in JPY and CHF.