China’s economy encountered its first contraction in 28 years in the first quarter as the coronavirus shut down factories and put millions out of work.

Markets may be seizing on the fact that policymakers, however reluctantly, are starting to allow stringent lockdowns to ease despite epidemiologists’ warnings.

IMF economic warnings dented cautious optimism that lockdowns were slowing the spread of the virus as it is not clear whether economies will recover quickly.

The dollar slipped as better-than-expected Chinese trade data painted a less gloomy picture of the coronavirus’ economic fallout than markets had feared.

A holiday in Europe found the U.S. dollar flat on Monday morning in North America, with trading volumes thin.