The US dollar fell on Monday, deepening its losses for the fifth straight day, and hit a 3-month low, as demand slowed as fears eased about the tensions between the US and China over Hong Kong, and the escalation of protests and riot in the US after the killing of George Floyd, ahead of key data releases on the manufacturing sector, which provide insight on the performance of the industrial activities in the world's largest economy after relaxing the coronavirus lockdown.

The dollar index fell 0.4% to the lowest since March 16 at 97.85 points, after opening at 98.30, and hit an intraday high of 98.32.

The greenback lost 0.2% on Friday, its second daily loss, after President Donald Trump's remarks on China.

The dollar index has lost 0.75% during May trading, posting its first monthly loss in 2020, as demand slowed for the US dollar as the best alternative investment, after many countries around the world relaxed their coronavirus-lockdown.

President Donald Trump did not take any unexpected measures against the Chinese government during his last press conference about the Hong Kong crisis on Friday, as he only announced sanctions on some Chinese officials, and directed his administration to end the special trade relationship with Hong Kong.

The Chinese government has passed a new National Security Law over Hong Kong, which reduces its autonomy after it gained independence from British rule in 1997.

It's clear then the US doesn't want roll back the progress made on trade with China, while aiming to extend talks to the second stage. 

Protests and riot continued in several US states, due to the killing of the African American citizen, George Floyd, from police brutality, weighing down on the battered US economy that already suffers from the coronavirus impact..

Investors are anticipating key economic data releases today on the US manufacturing PMI for May, which will deliver insight on the performance of the industrial activities in the world's largest economy after relaxing the coronavirus lockdown.

At 14:00 GMT, the ISM manufacturing PMI reading for May will be released, with forecasts to rise to 43.5 points in May vs. 41.5 in April.

European stocks rose on Monday, to resume gains after pausing on Friday, on strong investors sentiment, as fears eased about the tensions between the US and China over Hong Kong. 

The Stoxx Europe 600 index rose 0.7% as of 10:25 GMT, after it closed lower by 1.4% on Friday on profit-taking from 11-week high.

The index gained 3% during the past week, posting its second weekly gain in a row, after the European Commission launched the economic stimulus fund.

The pan European index opened higher today, near an 11-week high, with most European markets and sectors seeing green today.

President Donald Trump announced sanctions on some Chinese officials during his last press conference about the Hong Kong crisis on Friday, and directed his administration to end the special trade relationship with Hong Kong that were granted to the city after it became independent from British rule in 1997.

Trump did not mention the US trade relations with China or threatened to impose new tariffs, which eased market's fears of renewed tensions between the world's two largest economies.

S&P 500 futures fell 0.9%, due to protests in the US after the killing of George Floyd, after the index closed higher by 0.5% on Friday at Wall Street, after Trump's press conference about China.

Back to Europe, the Euro Stoxx 50 index added 0.7%, France's CAC 40 jumped 1.2%, while the UK's FTSE 100 rose 1.1%, and the German market is closed today in observance of a public holiday.  

Gold prices rose on Monday, extending gains for the fourth straight day, and hitting a 2-week high, as the US dollar fell against a basket of currencies.

Gold prices rose 0.6% to the highest since May 21 at $1,744.49, after it gained 0.6% on Friday, posting the third daily gain on a weak US dollar.

Gold has gained 2.5% during May, its second monthly gain in a row, on strong safe haven demand, amid the current risks that dominate the global scene.

The dollar index fell against a basket of currencies by 0.4% today, to deepen its losses for the fifth straight day, hitting a 3-month low at 97.89 points, which comes in favor of gold and other dollar-denominated metals prices.

The US dollar was weighed down by improved investors' sentiment as fears eased about the US-China tensions over Hong Kong.

President Donald Trump did not take any unexpected measures against the Chinese government during his last press conference about the Hong Kong crisis on Friday, as he only announced sanctions on some Chinese officials, and directed his administration to end the special trade relationship with Hong Kong.

Gold stocks at the SPDR ETF rose 3.51 metric tonnes on Friday, with the total at the highest level since May 2013 at 1,123.14 metric tonnes.

Asian stock indices opened the first session of the week and month higher as China's services and manufacturing sectors improved, while shrugging off mass protests in the US and some modest US-China escalation on Hong Kong. 

Earlier Chinese data showed the manufacturing PMI at 50.6 in May, while the services PMI rose to 53.6. 

Japan's TOPEX rose 0.49%, while Nikkei 225 rallied 1.18% to 22,135. 

China's CSI 300 surged 2.12%, while Shanghai powered up 1.65% to 2,899. 

Hong Kong's Hang Seng rose 3.30%, while South Korea's KOSPI added 1.5% to 2,060. 

New Zealand's NZX 50 rose 0.24%, while Australia's S&P/ASX 200 climbed 0.83% to 5,803.